Bitcoin Traders Chase $130K Bets in Anticipation of Renewed Bullish Volatility
Bitcoin's price has been stable between $100,000 and $110,000, but upcoming events like the Fed minutes release may impact volatility.
What to know:
Bitcoin traders are increasingly buying higher-level call options on Deribit, indicating expectations of bullish price volatility.
A breach of the $110,000 resistance could lead to increased volatility, with some traders positioning for a rise to $130,000, according to QCP Capital.
Bitcoin's price has been stable between $100,000 and $110,000, but upcoming events like the Fed minutes release may impact volatility.
"They are continuing to add exposure to September $130,000 calls, while steadfastly holding September $115,000/$140,000 call spreads, underscoring a structurally bullish Q3 outlook," QCP added.
A call option gives the purchaser the right, but not the obligation, to buy the underlying asset at a predetermined price on or before a specific date. A call buyer is implicitly bullish on the market. In other words, buyers of the $130,000 strike call expect BTC's spot price to rise above that level.
