Investors trying to predict where the Bitcoin price will head may want to take a look at the options market.
Bitcoin, the world’s largest cryptocurrency, fell below $40,000 on Monday for the first time since September.
With this development, crypto money investors began to worry.
The latest drop resulted in a 40% loss after the record hit in November.
In addition, with the recent decline in the cryptocurrency market, it became possible to test $40,000, which many technical analysts described as a critical level.
With the Bitcoin price stabilizing around this time, the moves in the options market indicate that investors believe the test of the $40,000 level is over, and a bullish wave could occur, according to the Genesis Global Trading team, including Noelle Acheson.
Analyst: “Recent Change Could Be Considered In Favor of Bulls For Bitcoin”
The implied volatility gap of forecasts in favor of bullish and bearish has recently dropped from double digits to near zero, according to Genesis data.
However, a decrease was observed in put options, while an increase was recorded in call options.
“This shift can be considered bullish for Bitcoin price,” Acheson said.
On the other hand, Bloomberg expert Mike McGlone stated that the $ 40,000 level is of critical importance.
McGlone’s other predictions include $50,000 as the closest hurdle to the BTC price’s rise to $100,000.
The famous analyst expressed his thoughts as follows: “While the demand and adaptation to Bitcoin increases, the amount of supply decreases.
Economic rules indicate that if BTC’s adaptation trend is not stopped, the price will increase. I believe that demand and adaptation values will continue to rise.”
*Not investment advice.