Bitcoin’s first three-week winning streak since February has sparked significant bullish sentiment, with call options activity pointing to a potential breakout above $75K. If BTC breaches this key level, analysts predict a swift rally toward $100K by late 2024.
Bitcoin (BTC) is making waves once again, registering its first three-week winning streak since February. The flagship cryptocurrency has gained over 7% in each of the last two weeks, and traders are gearing up for further upside potential, with significant interest in the $75,000 strike price and beyond.
A Bullish Run Driven by Market Optimism
As of late September, Bitcoin saw a 3% rise in the seven days leading up to Sept. 29, continuing its upward momentum after two prior weeks of strong gains. This marks a substantial recovery for BTC after several months of price corrections. The recent price surge has been partly fueled by inflows into U.S.-listed spot exchange-traded funds (ETFs), which accumulated more BTC than the total supply of newly mined coins in the past month.
Adding to the optimism, China’s major stimulus announcement further bolstered confidence in the broader market, pushing Bitcoin’s trajectory upward.
Call Buying Activity Surges for $75K Strike Price
Traders and investors seem particularly bullish, with substantial activity on the options markets. According to Amberdata, there has been massive buying of call options at the $75,000 strike price on crypto exchange Deribit. At the same time, put selling activity has increased, signaling traders’ confidence that the price will rise further. Selling puts typically suggests that investors are betting against further downside in the market.
Amberdata’s Director of Derivatives, Greg Magadini, highlighted this in a recent note, explaining, “This flow pattern suggests a bullish outlook for spot prices due to the put selling while also anticipating an acceleration in price movement.” In essence, traders are expecting BTC to break out of its recent price consolidation, with potential for significant upside.
The Expanding Triangle: A Key Breakout Pattern
Veteran crypto analyst Peter Brandt has pointed to an “expanding triangle” pattern that has formed over the past six months. This technical pattern is often associated with corrective trends, but the recent surge suggests that BTC could be on the verge of breaking out of this corrective phase. A successful break above $75,000 could mark the end of the triangle pattern and signal the resumption of a broader uptrend that began in October 2023, when BTC was trading below $30,000.
What’s Next? Potential Rally to $100K
Looking ahead, many analysts are eyeing the $100,000 mark. If Bitcoin manages to breach the $75,000 level, it could set the stage for a rapid rally toward new all-time highs. Magadini noted that call option activity for the $100,000 strike price has been concentrated in options contracts expiring in late December 2024. If Bitcoin breaks through $75,000, this could trigger a wave of buying activity, pushing the price even higher.
The combination of retail accumulation, increased options activity, and reduced liquidity due to the outflow of BTC from exchanges all paint a bullish picture for Bitcoin’s near-term price action.
Disclosure: This article is for informational purposes only and does not constitute financial advice. Cryptocurrency investments are highly volatile, and readers should conduct their own research or consult a financial advisor before making investment decisions.