Bitcoin options traders predict massive surge in BTC price in the first half of 2023


  • Bitcoin options traders are bullish on a massive rally in BTC within the next six months. 
  • The bullish sentiment among traders is evident from the renewed premium in Bitcoin futures listed on the Chicago Mercantile Exchange. 
  • The demand for bullish Bitcoin calls picked up with BTC topping the 200-day moving average for the first time since April 2022. 

Bitcoin, the largest cryptocurrency by market capitalization witnessed a spike in demand for bullish calls tied to the asset. BTC price topped its 200-day moving average for the first time since April 2021 fueling a bullish narrative among options traders. 

The crypto ended the week on January 13 yielding 20% gains, the highest weekly percentage gain since February 2021. 

Also read: Bitcoin price wipes out losses from FTX exchange collapse, hits $21,095 after two months

Bitcoin options traders are bullish on BTC gains

Bitcoin price yielded 20% gains in the week between January 9 and 16. The bullish sentiment among options traders is evident from the renewed premium in BTC futures listed on the Chicago Mercantile Exchange (CME). 

The front-month contract expiring on January 28 hit a four-month high of $21,535, while Bitcoin price on spot exchanges hit $21,437. The bullish sentiment among options traders is consistent with the improvement in the macroeconomic outlook and risk revival in the traditional market. 4

Bitcoin’s bullish call options expiring in six months have become pricier than the bearish put options, based on data from crypto intelligence tracker Amberdata. The 180-day call-put skew is a metric that measures the price for calls relative to puts and is a good measure of consensus in the community for the next six months. 

Bitcoin Skew maturity

Bitcoin Skew constant maturity 

As seen in the chart above, both short-term and long-term call-put skews have turned positive for the first time since April 2021. Both institutions and retail investors use options to speculate and hedge against future shifts in the price of Bitcoin.

The flow of Bitcoin options gives an insight into the technical levels of support and resistance for market participants. The February purchases of $22,000/ $24,000 calls came in when Bitcoin exchanged hands at $19,000 on spot exchanges. 


Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.

If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.

FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.

The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.

Recommended content


Recommended Content

Editors’ Picks

Bitcoin Price Forecast: Analysts anticipate increased volatility as the US presidential election looms

Bitcoin Price Forecast: Analysts anticipate increased volatility as the US presidential election looms

Bitcoin price teased its all-time high of $73,777 last week but declined to trade below $69,000 on Monday. Analysts suggest that market volatility is expected to rise as the US presidential election approaches.

More Bitcoin News
Litecoin poised for double-digit decline after breaking ascending trendline

Litecoin poised for double-digit decline after breaking ascending trendline

Litecoin breaks and closes below an ascending trendline, signaling a change in market structure. On-chain metrics paint a bearish picture, as LTC’s dormant wallets are active, and the NPL indicator shows a negative spike.

More Litecoin News
Top 3 Price Prediction Bitcoin, Ethereum, Ripple: BTC, ETH and XRP decline ahead of US elections

Top 3 Price Prediction Bitcoin, Ethereum, Ripple: BTC, ETH and XRP decline ahead of US elections

Bitcoin (BTC), Ethereum (ETH), and Ripple (XRP) all faced resistance at crucial levels ahead of the US Elections, leading to a price decline. As of Monday, they neared key support levels, and a firm close below these marks could signal further declines.

More Cryptocurrencies News
21Shares files S-1 for XRP ETF amid ongoing tension between Ripple and SEC

21Shares files S-1 for XRP ETF amid ongoing tension between Ripple and SEC

21Shares filed an S-1 registration with the Securities and Exchange Commission (SEC) on Friday for an XRP exchange-traded fund (ETF). While the chance of approval is slim with the current SEC administration, the landscape could change after the upcoming elections.

More Cryptocurrencies News
Bitcoin: New all-time high at $78,900 looks feasible

Bitcoin: New all-time high at $78,900 looks feasible

Bitcoin price declines over 2% this week, but the bounce from a key technical level on the weekly chart signals chances of hitting a new all-time high in the short term. US spot Bitcoin ETFs posted $596 million in inflows until Thursday despite the increased profit-taking activity.

Read full analysis
Best Forex Brokers with Low Spreads

Best Forex Brokers with Low Spreads

VERIFIED Low spreads are crucial for reducing trading costs. Explore top Forex brokers offering competitive spreads and high leverage. Compare options for EUR/USD, GBP/USD, USD/JPY, and Gold.

Read More

BTC

ETH

XRP