Recent options data from Binance has revealed a concentration of open interest in bitcoin options at a strike price of $75,000 for the end-of-June expiry, according to market analyst Ruslan Lienkha. Lienkha explained that this open interest concentration aligns with Bitcoin’s all-time high. In mid-March, bitcoin reached a peak value of over $73,000.
Options are derivative contracts that grant traders the right, but not the obligation, to buy or sell the underlying asset at a predetermined price on or before a specific date. Call options provide the right to buy, while put options offer the right to sell. It is generally assumed that traders who purchase call options are bullish on the market, while put buyers are bearish.
Lienkha highlighted the significant domination of call options in the open interest, suggesting that many option traders anticipate bitcoin surpassing its previous all-time high by the end of June. This observation is consistent with data from the Deribit derivatives exchange, which also shows a concentration of calls at a strike price of $75,000 for the end-of-June expiry.
Despite expectations of a price surge, Lienkha predicts that the bitcoin price will likely consolidate around its current levels in the coming weeks. This suggests a potential period of relatively stable trading in the short term. At the time of writing, Bitcoin (BTC) is trading at $61,212, experiencing a slight increase of over 0.54% in the past 24 hours.
Source Agencies
