Bitcoin’s price has surged to over $84,000, with traders betting on a potential target of $100,000 as bullish sentiment returns.
Bitcoin Options Play Shows $100K Target Back in Bulls’ Crosshair
Bitcoin‘s price has bounced to over $84,000 since probing lows under $75,000 last week, with traders chasing upside through the Deribit-listed call options. The recovery comes as the bond market chaos supposedly forced President Donald Trump to capitulate on tariffs just days after announcing sweeping import levies on several nations, including ‘China‘.
Bullish Sentiment Indicator Revisited
Bullish bitcoin (BTC) options strategies are becoming popular again, stabilizing a crucial sentiment indicator that indicated panic early last week. A call 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, looking to profit from an expected price rise.
Bitcoin options allow traders to buy and sell contracts that give them the right, but not the obligation, to purchase or sell a certain amount of bitcoin at a set price.
These contracts are based on the underlying value of bitcoin and can be used for hedging, speculation, or other investment strategies.
Bitcoin options can have various strike prices, expiration dates, and types, such as call or put options.
They offer flexibility in managing risk exposure to cryptocurrency markets.
Market Skew and Open Interest
The pivot to upside calls has normalized the options skew, which reflected strong put bias or downside fears early last week. The 30-, 60-, and 90-day skews have rebounded to just above zero, up from deeply negative levels a week ago, indicating a decrease in market panic and a resurgence of upside interest.
The seven-day gauge remains negative but reflects a notably weaker put bias than a week ago when it dropped to -14%. The distribution of open interest highlights the resurgence of the $100K call as the most favored options bet on Deribit, which accounts for over 75% of global options activity.
Resurgence of $100K Call Option
As of writing, the $100K call boasted a cumulative notional open interest of nearly $1.2 billion. Calls at $100K and $120K were popular early this year before the market swoon saw traders deploy money in the $80K put last month.
The chart shows the concentration of open interest in calls at strikes ranging from $95,000 to $120,000. Meanwhile, the $70K put is the second-most popular play with an open interest of $982 million.
