A New $110K Call Option Strategy Emerges Amidst Bitcoin's Lethargy

Overview

Bitcoin (BTC) has remained stagnant below $100,000 for this month. Despite this, traders are still betting on a bullish future. The popular strategy has shifted towards buying call options, specifically aiming for the $110,000 mark on March 28.

Key Points

The $110K call option on Deribit has emerged as the leading choice this month, backed by research from Amberdata.
The price of Bitcoin stays within a limited range due to fluctuations in the memecoin markets and persistent macroeconomic challenges.

“Looking at the month-to-date flows for on-screen traders… the buying of March $110K calls has been the most active trade,” said Greg Magadini from Amberdata.

A call option provides the buyer the right to purchase an asset at a specified price by a certain date, displaying bullish sentiment from traders. Bitcoin’s current trading conditions are bolstered by positive news, such as MicroStrategy’s acquisitions and Abu Dhabi’s substantial investments in Bitcoin ETFs.

However, ongoing economic concerns, including recent U.S. inflation reports, pose a challenge. Over the weekend, a token called LIBRA experienced drastic volatility, raising discussions about Argentina’s financial policies under President Xavier Milei.

Thus, the combination of potential bullish developments and bearish trends in the minimal volatility of options suggests that Bitcoin may remain in its current position for a while.