• Press Releases
    • Submit a press release
    • Read All
  • Advertise
  • Contact us
Crypto.com Logo Crypto.com Logo
Bitcoinist.com
No Result
View All Result
  • Bitcoin
    • News
    • Price
    • Businesses
    • Acceptance
    • Technology
    • Investment
    • Regulation
    • Reviews
    • All Bitcoin News
  • Altcoins
    • News
    • Price
    • Ethereum
    • Ripple
    • Litecoin
    • EOS
    • NAGA
    • All Altcoin News
  • Tech
    • Blockchain
    • Security
    • FinTech
  • Industry
    • Press releases
  • Price
    • Bitcoin Price
    • Ethereum Price
    • Litecoin Price
    • Binance Coin Price
    • Monero Price
    • MimbleWimbleCoin Price
  • How to
    • Buy gift cards/mobile Top Ups with Cryptos
    • What Is Bitcoin?
    • Best Bitcoin Wallet
    • Bitcoin vs Ethereum
    • Why Use Blockchain Technology?
    • Bitcoin Cash ABC vs. Bitcoin Cash SV
    • How to Buy Cryptocurrency
    • Bitcoin Mining
    • Best Bitcoin Brokers
    • Best Bitcoin Forex Brokers
    • How To Earn Bitcoin
    • What is Facebook Libra?
    • Ripple and XRP: The Complete Guide
    • Bitcoin Casinos – Where, What and How to Play
  • Play Games
  • BET&WIN
  • Bitcoin Casino Reviews
  • Bitcoin
    • News
    • Price
    • Businesses
    • Acceptance
    • Technology
    • Investment
    • Regulation
    • Reviews
    • All Bitcoin News
  • Altcoins
    • News
    • Price
    • Ethereum
    • Ripple
    • Litecoin
    • EOS
    • NAGA
    • All Altcoin News
  • Tech
    • Blockchain
    • Security
    • FinTech
  • Industry
    • Press releases
  • Price
    • Bitcoin Price
    • Ethereum Price
    • Litecoin Price
    • Binance Coin Price
    • Monero Price
    • MimbleWimbleCoin Price
  • How to
    • Buy gift cards/mobile Top Ups with Cryptos
    • What Is Bitcoin?
    • Best Bitcoin Wallet
    • Bitcoin vs Ethereum
    • Why Use Blockchain Technology?
    • Bitcoin Cash ABC vs. Bitcoin Cash SV
    • How to Buy Cryptocurrency
    • Bitcoin Mining
    • Best Bitcoin Brokers
    • Best Bitcoin Forex Brokers
    • How To Earn Bitcoin
    • What is Facebook Libra?
    • Ripple and XRP: The Complete Guide
    • Bitcoin Casinos – Where, What and How to Play
  • Play Games
  • BET&WIN
  • Bitcoin Casino Reviews
Bitcoinist.com
No Result
View All Result
Nexo

Options Traders are Nearly All Long on Bitcoin; What This Means for BTC

Cole Petersen by Cole Petersen
2 years ago
in Bitcoin
0
Advertisement
  • Bitcoin’s week-long bout of consolidation appears to be leading options traders to grow increasingly bullish on the cryptocurrency
  • Data shows that options traders are nearly all anticipating BTC to see further upside in the weeks and months ahead
  • There are multiple factors, however, that suggest it is poised to see downside in the near-term
  • These factors include rising funding, a high quantity of underwater long positions, and its multiple failed attempts to break above $10,000

Bitcoin has been seeing lackluster price action as of late. It has largely been consolidating over the past week, with buyers being unable to catalyze and upside movement due to the resistance at $10,000.

Analysts do believe that BTC is positioned to see further weakness due to a few key factors. One such factor is the fact that funding has flipped positive on most exchanges – meaning it is costly to be in a long position.

5 BTC + 300 Free Spins for new players & 15 BTC + 35.000 Free Spins every month, only at mBitcasino. Play Now!

Additionally, last week’s fleeting movement past $10,000 trapped a massive amount of long positions, and this could provide sellers with significant fuel to catalyze a sharp downside movement in the weeks ahead.

Options traders don’t seem to be too concerned about these factors, however, as data reveals that options open interest on the CME is almost entirely comprised on calls – meaning investors are anticipating upside.

CME Bitcoin Options Traders Flip Long as BTC Consolidates

Bitcoin has been caught within a firm bout of consolidation over the past several days and weeks.

BitStarz Player Lands $2,459,124 Record Win! Could you be next big winner?
Get 110 USDT Futures Bonus for FREE!

This has caused it to hover right around its current price of $9,700, which is in the middle of its current trading range between $9,400 and $9,900.

Overnight, traders pushed Bitcoin to both the upper and lower boundaries of this trading range, cleansing the market of overleveraged longs.

What is the best crypto casino in July 2022? Read our comprehensive comparison! We made deposits, played and reviewed 80+ crypto casinos to choose the best one.

This volatility, however, did not help BTC establish any type of near-term trend.

One interesting factor to keep in mind is that professional traders, institutions, and leveraged funds trading options on the CME are all positioning for the benchmark cryptocurrency to see further upside.

Su Zhu – the CEO of Three Arrows Capital – spoke about this trend in a recent tweet, saying:

“CME BTC options open interest is nearly entirely in calls (upside moves).”

Bitcoin
Image Courtesy of Su Zhu (Data via CME)

These Factors Suggest Options Traders May Have It Wrong 

Options traders on the CME may be gravely mistaken about the cryptocurrency’s near-term outlook.

As Bitcoinist reported just one day ago, Bitcoin’s positive funding and the high quantity of underwater long positions are both grim signs for where it goes next.

“I flipped neutral for now. Funding has gone positive everywhere and there are a bunch of BFX longs underwater,” one previously bullish analyst stated.

Bitcoin
Image Courtesy of Byzantine General

A triple top formation formed by the three rejections Bitcoin has seen in the mid-$10,000 region over the past several months could also help guide it lower in the near-term.

Featured image from Shutterstock.
ShareTweetShareShare

Sign Up for Our Newsletter!

For updates and exclusive offers enter your email.

I consent to my submitted data being collected and stored.
Cole Petersen

Cole Petersen

Cole is a cryptocurrency analyst based in Los Angeles. He studied at the University of California Irvine and has been interested in Bitcoin and the crypto markets since 2013.

Related Posts

Bitcoin

Bitcoin Koalas: 55% Of Investors Didn’t Sell Their Coins During Crypto Storm

5 hours ago
Crypto

Crypto Rout On Trading Volumes Costs Coinbase $1.1 Billion In Losses

7 hours ago
Bitcoin

Bitcoin Rally Ignites Lackluster Performance Of Crypto Stocks

11 hours ago
bitcoin miners

Bitcoin Miners Sold 5,700 BTC During July, New Report Finds

21 hours ago
Bitcoin

Bitcoin Miner Revenue Slows Down As BTC Price Slumps Sideways

23 hours ago
Crypto

Crypto Markets Have ‘Hit The Floor,’ JP Morgan Says, As Bitcoin Nears $24,000

1 day ago

Bitcoin news portal providing breaking news, guides, price analysis about decentralized digital money & blockchain technology.

Bitcoin

  • News
  • Price
  • Businesses
  • Acceptance
  • Technology
  • Investment
  • Regulation
  • Reviews

Altcoins

  • News
  • Price
  • Ethereum
  • Ripple
  • Litecoin
  • EOS
  • NAGA

Categories

  • Blockchain
  • Security
  • FinTech
  • Technology
  • Trending
  • Breaking News
  • Press Releases
  • How to

Pages

  • Contact us
  • Editorial Policy
  • Advertise
  • Crypto Prices from Nomics
© 2022 Bitcoinist.com. All Rights Reserved.
  • Bitcoin
    • News
    • Price
    • Businesses
    • Acceptance
    • Technology
    • Investment
    • Regulation
    • Reviews
    • All Bitcoin News
  • Altcoins
    • News
    • Price
    • Ethereum
    • Ripple
    • Litecoin
    • EOS
    • NAGA
    • All Altcoin News
  • Tech
    • Blockchain
    • Security
    • FinTech
  • Industry
    • Press releases
  • Price
    • Bitcoin Price
    • Ethereum Price
    • Litecoin Price
    • Binance Coin Price
    • Monero Price
    • MimbleWimbleCoin Price
  • How to
    • Buy gift cards/mobile Top Ups with Cryptos
    • What Is Bitcoin?
    • Best Bitcoin Wallet
    • Bitcoin vs Ethereum
    • Why Use Blockchain Technology?
    • Bitcoin Cash ABC vs. Bitcoin Cash SV
    • How to Buy Cryptocurrency
    • Bitcoin Mining
    • Best Bitcoin Brokers
    • Best Bitcoin Forex Brokers
    • How To Earn Bitcoin
    • What is Facebook Libra?
    • Ripple and XRP: The Complete Guide
    • Bitcoin Casinos – Where, What and How to Play
  • Play Games
  • BET&WIN
  • Bitcoin Casino Reviews

© 2021 Bitcoinist. All Rights Reserved.

This website uses cookies. By continuing to use this website you are giving consent to cookies being used. Visit our Privacy Center or Cookie Policy.