Bitcoin Traders Target $100k as Price Rebounds

May. 07, 2024.
2 min. read. Interactions

Bitcoin's price jumped 12% to $63,470 following positive economic updates and Fed's rate hike pause, sparking trader speculation about it potentially reaching $100,000 this year.

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Bitcoin’s recent price surge, driven by a favorable economic climate, has reignited speculation among options traders about the possibility of the cryptocurrency reaching $100,000 this year. Since Federal Reserve Chairman Jerome Powell’s recent announcement dismissing further rate hikes, Bitcoin has climbed over 12% to $63,470, as per CoinDesk. The weak U.S. nonfarm payrolls data further bolstered this upward trajectory, validating Powell’s approach and fueling recovery in the cryptocurrency’s value.

Amidst this renewed optimism, there has been a spike in the demand for Bitcoin call options, with traders on Deribit and over-the-counter networks setting their sights on targets above $75,000 and potentially hitting $100,000. “BTC risk reversals have gone positive, and [there has been a] renewed demand for BTC Sep expiry $75,000 and $100,000 calls,” noted QCP Capital. Options trading is reflecting bullish sentiments, with call options—bets on rising prices—outweighing puts.

Further highlighting this trend, Paradigm, an OTC institutional cryptocurrency trading network, reported a noticeable increase in demand for out-of-the-money calls, suggesting anticipation of further price increases. “We noticed the previous March 25 [expiry] $200,000 call buyer closing his position to buy the July 2024 [expiry] $85,000 strike,” Paradigm shared in a statement.

Analysts who see a bullish path ahead also echo support for Bitcoin’s potential rise. “Bitcoin continues to be supported by the U.S. election cycle and ongoing deficit spending,” said 10X Research, suggesting a tactical bullish stance if Bitcoin remains above $62,000. Meanwhile, Swissblock Insights indicated that a weaker dollar, unless countered by the Fed, could further benefit Bitcoin and other cryptocurrencies.

In technical analysis, John Glover of Ledn provided an Elliot wave forecast that sees Bitcoin potentially reaching $92,000. “Although the dip to $56.5k may have completed the correction, I still expect to see a price of $52-55k before Wave 4 completes, then a push to approximately $92k,” Glover predicted.

As the market continues to react to economic indicators and Federal Reserve policies, Bitcoin remains a focal point for traders leveraging options to capitalize on its volatility and potential upside.

SOURCE: Bitcoin Rebound Has Crypto Options Traders Anticipating $100K

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