Despite Bitcoin recently being stuck in a consolidation pattern, oscillating between $100,000 and $110,000, the derivatives market has already begun to sniff out signs of market ups and downs, positioning itself early. Traders are pursuing higher-priced call options, betting that the next wave of bullish momentum is about to hit.
Singapore-based cryptocurrency trading firm QCP Capital stated:
Although market volatility is near historical lows, if Bitcoin can effectively break through the $110,000 resistance level, it may ignite a new round of volatility buying. Some large institutions seem to have started positioning themselves in advance of a market breakout.
QCP Capital pointed out that many large investors are actively increasing their positions in Bitcoin call options set to expire in September with a strike price of $130,000. At the same time, they continue to maintain positions in the $115,000 and $140,000 spread strategies, indicating a structurally bullish stance on the market trend for the third quarter.
In the options market, a call option grants the holder the right to buy an asset at a predetermined price within a specific time frame. When traders aggressively buy call options with high strike prices, it indicates an expectation that the asset's price will rise significantly. In simple terms, an investor betting on $130,000 call options is optimistic that Bitcoin's price will break through that level.
Due to heavy selling pressure from long-term holders taking profits, which offsets the buying momentum brought by the inflow of spot ETF funds, Bitcoin has been trading sideways in the $100,000 to $110,000 range for over 50 days.
With the Federal Reserve set to release the minutes from its June meeting on Wednesday, there are expectations that this could trigger renewed market volatility.
"Bitcoin Stuck at $110,000: Traders Rush into $130,000 Call Options, Betting on a Major Q3 Market Explosion" was first published on (Blockcast).
