The Bitcoin market is witnessing a clear polarization among investors regarding future price trends.
Many traders believe that Bitcoin has peaked, while another group still holds a positive outlook with hopes that prices will reach new highs. The debate centers around the resistance level of $112,000 and the option strategies built to capitalize on year-end volatility.
MAIN CONTENT
The Bitcoin market is divided into two large groups: the bears believe the market has peaked and the bulls forecast price increases.
The resistance level of $112,000 is a hot debate point along with related strike levels.
Investors are constructing complex option structures, anticipating strong volatility towards the end of 2024.
How is the Bitcoin market divided regarding price trends?
According to Adam, a macro market researcher, the Bitcoin trading community is currently divided into two main streams with opposing views on price prospects. The bears believe that Bitcoin has peaked, while the bulls maintain optimism and bet on further price increases.
Adam, through the briefing with the English community on platform X, emphasizes that this opposition reflects the complex and deeply polarized market sentiment, especially as many investors conduct detailed analyses of options to hedge or capitalize on expected volatility.
What role does the resistance level of $112,000 play in the Bitcoin price debate?
Research confirmation shows that the level of $112,000 is a critical testing point for both bulls and bears. The bears focus on holding put options with strikes from $100,000 to $110,000, reflecting expectations that prices will struggle to break above this level.
The market is very sensitive around the $112,000 level, which is a significant barrier but also holds many opportunities for upcoming volatility.
Adam, Macro Researcher, 07/19/2024
Meanwhile, bullish investors are building call options with strikes up to $115,000 and higher, conveying positive signals about the year-end Bitcoin price outlook.
What option structures have been built to capitalize on year-end volatility?
Investors are utilizing complex option strategies such as spread call options and ladder structures to optimize profits amid expected strong price volatility.
Option structures Strike Level Main Target December spread call option $115,000 – $150,000 Take advantage of the upward price trend and minimize risk December ladder option $140,000 – $170,000 – $190,000 Increase profitability potential when prices are highly volatile.
This strategy shows the careful preparation of traders expecting significant volatility, especially in the late year period which often sees substantial changes in the cryptocurrency market.
Frequently Asked Questions
Does the current Bitcoin market have a clear trend?
According to expert Adam, the market remains deeply polarized between the bears and the bulls, with no strong trend identified.
How does the resistance level of $112,000 affect trading?
This is a key price level, with many options centered around this level to hedge or take advantage of volatility.
What are the current popular option strategies?
Spread call structures and ladder options are widely used by traders to prepare for year-end volatility.
Why is the year-end volatility expected to be significant?
Market experience from many years shows that the end of the year often experiences strong movements due to macroeconomic factors and investor sentiment.
How do options assist investors in the cryptocurrency market?
Options provide tools for risk hedging and opportunities to profit from strong price volatility.
Source: https://tintucbitcoin.com/bitcoin-tranh-cai-nguong-khang-cu-112-000-usd/
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