Bitcoin options market hits record high: is this a sign of a medium-term rally?
It appears that Bitcoin's beginning price 2020 has dramatically changed the medium-term outlook as investors are now largely betting that the ongoing BTC rally continues.
This becomes clear when you look at yesterday's record volume of Bitcoin options, which indicates that investors are eyeing a medium-term rally in the cryptocurrency.
The volume of Bitcoin options is approaching the all-time high
Since Bitcoin hit a low of $ 6 in early January. 800, the cryptocurrency has found itself in an upward trend. Although BTC is currently encountering some resistance, the ability to move into the upper 8 without apparent rejection suggests 000 Hold $ mark, indicating that markets could experience further upward movements soon.
BTC options traders seem to agree with this assumption since bitcoin options trading volume hit an almost record high yesterday. Su Zhu, CEO of Three Arrows Capital, said in a recent tweet about this almost record-breaking volume, saying that he expects option volume to grow over the year 2020 will continue to rise.
Near-record volume on $ BTC options yesterday, I expect this record to be broken several times over the course of the coming year https://t.co/3VtOc1PXkV
– Su Zhu (@zhusu) 15. January 2020
Which factors could drive BTC higher in the year 2020?
Given that traders are anticipating further upward movements in BTC over the next twelve months, it is possible that they will view the upcoming halving as a potential bullish catalyst.
In addition to this historically positive event, analysts are also generally noticing that Bitcoin's technical situation after the strong upturn from $ 6. 000 – area has become increasingly bullish. The current upward trend of traders is further illustrated if one looks at the futures on prominent Asian exchanges like OKEx.
March $ BTC Futures on @OKEx going absolutely ham.
This coupled with the premium @binance is developing and the presence of frequent large clustered orders makes me thing this rally is largely Asia centric.
As such, I'll be monitoring the same to spot reversal signs. pic.twitter.com/S9Xy8toLuQ
– Hsaka (@HsakaTrades) 15. January 2020
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