Bitcoin Options Market Reaches Record High: Is It a Sign of a Medium-Term Rally?


It seems as though Bitcoin’s price action throughout the early part of 2020 has drastically altered its medium-term prospects, as investors are now widely betting that the ongoing BTC rally extends significantly further.This is elucidated while looking towards the near-record volume seen on Bitcoin’s options yesterday, which signals that investors are eyeing a mid-term rally for the cryptocurrency.Bitcoin Options Volume Nears All-Time Highs; Factors & TrendsSince Bitcoin tapped lows of $6,800 in early January, the cryptocurrency has been caught within a firm uptrend that has allowed it to climb as high as $8,900.Although BTC is currently pushing up against some resistance, its ability to hold steady within the upper-$8,000 region without incurring any type of discernable rejection suggests that the markets may soon see further upside.It appears as though BTC options traders concur with this assumption, as trading volume on Bitcoin options hit a near-record high yesterday.Su Zhu, the CEO of Three Arrows Capital, spoke about this near-record volume in a recent tweet, telling his followers that he anticipates the options volume to continue climbing higher throughout 2020.“Near-record volume on BTC options yesterday, I expect this record to be broken several times over the course of the coming year,” he noted.Near-record volume on $BTC options yesterday, I expect this record to be broken several times over the course of the coming year https://t.co/3VtOc1PXkV— Su Zhu (@zhusu) January 15, 2020What Factors Could Propel BTC Higher in 2020?Because it does seem that traders are anticipating BTC to see further upside throughout the coming twelve months, it is possible that they are looking towards the cryptocurrency’s upcoming mining rewards halving event as one potentially bullish catalyst.Beyond this historically bullish fundamental event, analysts are also widely noting that Bitcoin’s technical situation has grown increasingly bullish following its strong bounce from the $6,000 region.Trader’s current bullishness is further elucidated while looking towards the crypto’s futures on prominent Asian exchanges like OKEx.“March BTC Futures on OKEx going absolutely ham. This coupled with the premium @binance is developing and the presence of frequent large clustered orders makes me thing this rally is largely Asia centric. As such, I’ll be monitoring the same to spot reversal signs,” Hsaka, a prominent crypto analyst, explained in a tweet.March $BTC Futures on @OKEx going absolutely ham.This coupled with the premium @binance is developing and the presence of frequent large clustered orders makes me thing this rally is largely Asia centric.As such, I’ll be monitoring the same to spot reversal signs. pic.twitter.com/S9Xy8toLuQ— Hsaka (@HsakaTrades) January 15, 2020Assuming that this volume continues to grow in the near-term, it could lead to greater BTC buying pressure that subsequently allows its price to see some steady momentum, although it remains unclear as to how events like the halving will impact this potential growth.Featured image from Shutterstock.

Go to Source
Author: Cole Petersen


Recommended Crypto Services, Products and Strategies:

The first thing any crypto investor needs is is a reliable and secure Crypto Wallet.  Whether you’re looking for an online wallet, hardware wallet, desktop or mobile wallet, Crypto Renegade provides you with all the Best Crypto Wallets in each category.

Best Crypto Wallets Banner

When you’re ready to buy more crypto, or exchange your coins for others, Crypto Renegade’s list of the Best Crypto Exchanges has you covered.  The Crypto Exchanges recommended here offer everything from simplicity and convenience to advanced trading platforms and profit sharing. 

Best Crypto Exchanges Banner

If you want to learn more about the methods and tools that can be used to find Great Crypto Projects, then be sure to check out Crypto Renegade’s strategy for How To Find The Best Cryptocurrency.

Crypto Strategy Banner

For those people that don’t have any money to invest right now, or just want to understand the technology a bit more, you’ll definitely want to check out Crypto Renegade’s Free Crypto Strategy and start collecting Free Coins today!

Free Crypto Banner

What do you think about cryptocurrency? Do you have any questions about it? Be sure to leave a comment below.

This site uses Akismet to reduce spam. Learn how your comment data is processed.