- Despite the pullback from the Monday highs, Bitcoin remains above key resistance levels. As of this article’s writing, the leading cryptocurrency trades for $11,300.
- There are some bears that believe this rally is just a deviation from the range BTC was trading in.
- Derivatives data, though, shows that many traders are betting on Bitcoin continuing higher in the weeks and months ahead.
- Prominent market commentators agree with this positive sentiment that the cryptocurrency will continue higher. These prominent market commentators include the head of crypto funds and a senior analyst at Bloomberg who actively covers the cryptocurrency market.
Bitcoin Traders Are Expecting More Upside, Shows Option/Derivatives Flows
Even after Bitcoin’s recent rally, not all market participants are convinced that a bull market is here. Peter Schiff, the chief executive of Euro Pacific Capital and a prominent gold bull, wrote earlier this week:
“Two of the last three times #Bitcoin rose above $10,000 in Oct. of 2019 and in Feb. of 2020 it soon fell by 38% and 63% respectively. The last time Bitcoin rose above $10,000 was in May, and it only fell by 15%. It’s above $10,000 again today. How big will the next drop be?”
Two of the last three times #Bitcoin rose above $10,000 in Oct. of 2019 and in Feb. of 2020 it soon fell by 38% and 63% respectively. The last time Bitcoin rose above $10,000 was in May, and it only fell by 15%. It's above $10,000 again today. How big will the next drop be?
— Peter Schiff (@PeterSchiff) July 27, 2020
According to an analysis by a prop trader with a focus on cryptocurrency, buyers of options, though, are extremely bullish on Bitcoin and Ethereum.
Options are financial contracts that allow the buyer to purchase or sell an asset at a specific price at a specific time.
The trader wrote on options money flows, explaining the significance of how puts are “relentlessly sold among basically all maturities”:
“Options flow on #BTC and #ETH is one sided. Puts are being relentlessly sold among basically all maturities. Market is pricing in either continuation of bull run or consolidation. No fear.”
Prominent Market Commentators Agree
Per Julien’s analysis of BTC derivatives, a majority of traders seem to be bullish. Fortunately, prominent market commentators agree.
Dan Morehead and Joey Krug — who head the leading crypto fund Pantera Capital — wrote the following comment in March. They believe that the increased money printing by central banks will potentially boost Bitcoin past $20,000 by the end of 2020 or in early 2021:
“Now that we’re in the trillions, the deficit just simply has to have a positive impact on the price of things not quantitatively-easable — stocks, real estate, cryptocurrency relative to the price of money. Said another way, the BTC/USD cross-currency rate will rise. The price of bitcoin may set a new record in the next twelve months.”
This optimism has been echoed by other market commentators such as Mike McGlone, senior commodity analyst at Bloomberg Intelligence. He claimed that from a charting, on-chain, and fundamental standpoint, BTC is poised to move higher.
Featured Image from Shutterstock Price tags: xbtusd, btcusd, btcusdt Charts from TradingView.com Derivatives Data: Investors Think Bitcoin Will Continue Higher After 20% Surge
