Key Points
- Bitcoin options data suggests traders predict prices could exceed the all-time high by the end of June.
- However, Bitcoin's price is expected to remain stable in the short term.
Bitcoin options traders are speculating that the cryptocurrency's price could surpass its all-time high by the end of June.
This prediction is based on recent options data from Binance, which shows a concentration of open interest at a strike price of $75,000 for the end-of-June expiry.
The Prediction's Basis
Ruslan Lienkha, the chief of markets at Cyprus-based exchange YouHodler, stated that the open interest concentration is focused on Bitcoin's all-time high.
Bitcoin reached its record peak of over $73,000 in mid-March.
"There is significant call open interest domination, and many option traders expect the Bitcoin price to surpass its all-time high by the end of June," Lienkha said.
This viewpoint aligns with data from the Deribit derivatives exchange, which also demonstrates a concentration of calls at a strike price of $75,000 for the end-of-June expiry.
Short Term Consolidation
Nonetheless, Lienkha believes the Bitcoin price will likely continue to consolidate around current levels in the coming weeks.
Options are derivative contracts that allow a trader to buy or sell an underlying asset at a predetermined price on or before a specific date.
A call option provides the right to buy, and a put gives the right to sell.
It's generally believed that a trader who purchases a call option expects the market to decline, while a put buyer anticipates a bearish market.
Bitcoin is currently maintaining above the $61,000 mark, with a small decrease of over 1% in the past 24 hours, trading at $61,115.
The GM 30 Index, which represents a selection of the top 30 cryptocurrencies, has also seen a decrease of 0.77% to 128.52 during the same period.
