Last week, Bitcoin prices surged significantly under a bullish revival, pushing assets to around $124,400, within the current highest range. Amid this sense of well-being, there are significant changes in the options trading market, which could have a major impact on BTC’s price trajectory.
Bitcoin Options Traders are aiming for an upward trend after a market shift
According to a report from Blockchain Analytics Firm GlassNode, last week’s record option Expiry cleared a considerable backlog of its contract and effectively “resets” its open interest. When the board is wiped clean, a fresh position indicates that as Q4 begins, the trader is leaning more aggressively from the downside hedge and leaning towards an upward exposure.
For example, volatility measurements suggest that traders expect Bitcoin to settle for the time being. One-week implicit volatility (IV), a key measure of expected market fluctuations, fell about three points from last week’s peak, with two-week contracts falling twice. However, the longer maturation is fixed in the 40-43% range, drawing a gentle picture around the near future, but there is room for uncertainty in the second half of the year.
Meanwhile, another important technological change appeared in risk inversion (RR) to measure the skewness between call and put demand. The weekly 25-delta RR has shook dramatically from the 18.5 Vol Put Premium, showing strong demand for downside hedges to 4 vol call premium, indicating that traders are currently paying for the uptick. Longer maturation also flattens out, providing a more balanced risk outlook, but strengthening the short-term bullish tilt.
Market trends confirm the bias of rising. Price target is $136k-$145,000
Interestingly, GlassNode data reveals that options market flow data also confirms an ongoing bullish shift. Traders are currently unstoppable calls for the ups, with net premiums concentrated in the strike range of $136,000-$145,000. This activity reflects ongoing expectations of Bitcoin strength, but with a higher strike, by calling for sales, the proposed participants are still not ready to chase the extreme parabolic targets.
Meanwhile, dealer’s gamma exposure remains restricted in post-expansion environments, with dealers having modestly long gamma on both sides. The impact of this stabilization could weaken volatility in the short term, but remains limited as the next major expiration date is still several weeks away. Therefore, meaningful hedge flows can approach future satisfaction.
At the time of writing, Bitcoin has continued trading at $122,086, following a prominent 11.92% increase in past days. In particular, daily trading volume of assets increased by 19.01%, equivalent to $859.4 billion.
Flickr featured images, TradingView charts
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