April 21, 2021

Bitcoin options demonstrate bullish market sentiment on BTC

Bitcoin options demonstrate bullish market sentiment on BTC

Activity in the bitcoin options market assumes that its participants expect continued growth cryptocurrency rate, which lacks to historical highs of less than 3%.

Monthly expected volatility, driven by demand for call option options, rose to 81%, the highest level since May, although at the beginning of the month it was 58%.Most of the increase between 60% and 81% occurred in the last five days.The three- and six-month options metrics also rose to multi-month highs.

Bitcoin options demonstrate bullish market sentiment on BTC

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"The recent increase in the expected volatility was the result of the purchase of a significant volume of call options, Vishal Shah, founder of the Alpha5 derivatives exchange, told CoinDesk.

Investors are taking positions in the expectation of continuing the bull market."

In addition, the price discrepancy between call path options is near record negative values.In other words, investors show greater demand for bullish bets than bearish.Last week a historical low was recorded, but some traders bought put options when the price of bitcoin rolled back from$18,400 to $17,100.to the fact that the rate has started to decline again.

Bitcoin options demonstrate bullish market sentiment on BTC

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Blockchain-level metrics also support the continuation of the bullish rally. Thus, the intensity of bitcoin turnover, reflecting the number of times when each coin deposited on the exchange was used for making transactions, rose to 7.28, the highest level since June 7.This metric serves as a confirmation of the preservation of demand for cryptocurrency, while the balances on exchange wallets continueDecline.

Bitcoin options demonstrate bullish market sentiment on BTC

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"We may see a significant change in the value of bitcoin on Thanksgiving (November 26)Blockchain.com co-founder Peter Smith said.

The new historical high will not surprise those who considered the scenario "not if, but when."It's inevitable, but the world will be aware, and it's good for distribution.'

Bitcoin options demonstrate bullish market sentiment on BTC

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