Bitcoin Options Data Shows Concentration at $75,000 Strike Price for End-of-June Expiry
Bitcoin Options Data Shows Concentration at $75,000 Strike Price for End-of-June Expiry
Recent options data from Binance has revealed that bitcoin open interest is heavily concentrated at a strike price of $75,000 for the end-of-June expiry, according to analyst Ruslan Lienkha, the chief of markets at YouHodler.
This concentration of open interest aligns with bitcoin’s all-time high, which was reached in mid-March when the cryptocurrency soared to over $73,000, as reported by The Block’s Price Page.
Lienkha noted that there is a significant domination of call open interest, indicating that many option traders are anticipating bitcoin to surpass its previous all-time high by the end of June.
This observation is supported by data from the Deribit derivatives exchange, which also shows a concentration of calls at a strike price of $75,000 for the end-of-June expiry.
Despite the bullish sentiment reflected in the options data, Lienkha believes that the bitcoin price is likely to continue consolidating around current levels in the short term.
Options are derivative contracts that give traders the right to buy or sell the underlying asset at a predetermined price on or before a specific date. A call option gives the right to buy, while a put option offers the right to sell.
At the time of writing, bitcoin is trading above the $61,000 mark, with a slight decline of over 1% in the past 24 hours to reach $61,115, according to The Block’s Price Page. The GM 30 Index, representing the top 30 cryptocurrencies, also decreased by 0.77% to 128.52 in the same period.
It is important to note that The Block is an independent media outlet that provides news, research, and data related to the crypto industry. This article is for informational purposes only and should not be construed as legal, tax, investment, financial, or other advice.