Key Points:
- Bitcoin traders are increasingly acquiring higher-level call options on Deribit, indicating bullish price expectations.
- A breach of the $110,000 resistance may result in increased volatility, with predictions of a rise to $130,000, according to QCP Capital.
- Bitcoin’s price has remained stable between $100,000 and $110,000, but upcoming Fed minutes may influence volatility.
Bitcoin traders are actively pursuing high-level call options on Deribit, signaling their preparation for renewed bullish market activity. According to QCP Capital, “Vols remain pinned near historical lows, but a decisive breach of the $110,000 resistance could spark a renewed volatility bid. Some larger players appear to be positioning for just that.”
Market Analysis
Trading dynamics are seeing activity as traders add exposure to options strikes like September $130,000 calls while maintaining $115,000/$140,000 call spreads, suggesting a structurally bullish outlook for Q3. A call option provides the buyer the right to purchase the asset at a specified price before a given date, reflecting a bullish sentiment on BTC’s price. Bitcoin’s price has lingered between $100,000 and $110,000 for over 50 days, with long-term holders countering ETF inflows.
Expectations of increased volatility are building as the June Fed minutes are set to be released on Wednesday, along with indications of an extended 90-day tariff pause for several U.S. trading partners.
