Bitcoin Stuck: Options Traders Super Bullish, Expect A Spike To $80,000
Bitcoin is under pressure, recoiling from around the $72,000 level. Crucial support lies at $66,000. Bulls still have a chance
Bitcoin is in red at spot rates, moving flat inside the bull bar of May 20. While there is optimism about trend continuation, there are risks of prices tanking if buyers fail to show up. Though yesterday’s bar closed as bearish, the long lower wick suggests that prices recovered in the late NY session. In the sessions to come, the reaction at around $66,000 and $72,000 will determine the short-term trend.
Currently, Bitcoin is stable on the last day and week. Interestingly, while prices are moving sideways, participation is decent and above average at over $28 billion. Accordingly, in the days ahead, how prices react above or below the immediate reaction levels will trigger how traders engage. A spike above $72,000 will be a huge boost for sentiment, and likely to pump the average trading volume above the $50 billion level.
Besides prices, Bitcoin traders should closely watch the following news events:
- Yesterday, billions worth of Bitcoin from Mt. Gox creditors were moved. After the devastating hack in 2014, victims will receive compensation by October 2024. It is not immediately clear why the Mt. Gox stash was moved.
- Most BTC traders are bullish, as the Options market shows. Despite prices failing to crack $72,000, most bets are at $80,000 and $90,000, respectively. By May 31, most bets placed for the coin to trade above $72,000 would be worthless should prices remain at spot levels.
Bitcoin Price Analysis
The path of least resistance, at least from a top-down preview, is still northwards.
So far, BTC/USD prices remain below $72,000 but are encouragingly trending above $66,000.
From a volume analysis, buyers have the upper hand as long as prices are inside the May 20 bull bar.
Risk-off aggressive traders may consider longing the dips if prices are above $66,000, aiming to align with the defining bull bar of May 20.
However, a more conservative approach might be to wait for a clean break, either above $72,000 or $66,000, before trading with the emerging trend.
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