After some volatility following the false news of spot Bitcoin ETF approval, the BTC price has been consolidating above the $28,000 level. On one hand, there are concerns about macro developments while on the other hand, there’s optimism with the spot Bitcoin ETF coming.
A Look At the Bitcoin Options Data
Also, the Bitcoin options data shows that the BTC price longs are gaining strength. The options market data indicates growing confidence in longer-term Bitcoin price increases. Today, more than 10,000 BTC block call options were traded. It has a combined value of nearly $300 million, representing over 40% of the day’s total options activity. The dominant strategy involved a sell BTC-3NOV23-29000-C and a buy BTC-29DEC23-34000-C diagonal spread, as per data shared by GreeksLive.
This spread is noteworthy as it involves selling short-term at-the-money (ATM) calls while purchasing longer-term out-of-the-money (OTM) calls, using the premium received from the sale. Although it may not imply immediate bullishness for Bitcoin in the short term, it clearly reflects a bullish outlook for Bitcoin’s long-term prospects.
What’s Next About BTC Price?
The BTC Price has been showing strength recently despite the pump and dump earlier this week. Bitcoin has held well above $28,000 along with optimism growing around the approval of the spot Bitcoin ETF.
Popular crypto analyst Michael van de Poppe stated that Bitcoin’s price isn’t displaying a strong follow-through at the moment. He expects a period of consolidation in this price range for a few days would be preferable before any further movement.
It appears that some liquidity needs to be cleared on the long side, which could lead to a test around the $27,600 to $27,800 range. Key support zones are at both $27,700 and $27,300, indicating potential areas of interest for long positions.
A pivotal support area for Bitcoin, spanning from $26,700 to $26,285, emerged as a battleground where bulls and bears fiercely contested. The support levels within this zone held great significance as they marked a decisive juncture for Bitcoin’s short-term direction
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