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- Bitcoin (BTC) touches $30k after breaking resistance points following BlackRock’s ETF application.
- There is bearish trade in the options market with a put-to-call ratio of around 0.82 according to analysts.
Bitcoin (BTC) currently has a neutral market sentiment with an incredible 17 percent gain in the last 7 days. As of press time, the asset was trading at $29,963.96 after breaking multiple resistance levels to hit $30k in the last few days. According to analysts, Bitcoin has a new resistance level of $30,911.90 and a support level of $29,106.90. Interestingly, the direction it takes may depend on several factors and events happening in the crypto industry. Most of the leading cryptos are in “greens”, and have been linked to the recent BlackRock’s spot Bitcoin ETF application. While many think that the current enforcement actions in the industry could make it difficult for this application to be approved, BlackRock’s history of 575 approved ETFs and one rejected application put the odds in their favor.
Vetle Lunde, senior analyst at K33 Research commented on this and its impact on the Bitcoin price:
An approval would profoundly impact the market structure of Bitcoin, as it would reduce the barriers for financial advisers to offer exposure.
Bitcoin mostly reacts to events surrounding SEC and crypto-related firms. Analysts observed that the price was in a bearish mode, and was trading at $26,300 when the SEC took legal actions against Coinbase and Binance.
Bitcoin in the Options Market
There was a bearish trade in the options market. According to data, there was a put-to-call ratio of 0.82 compared to the open interest of buy options equivalent to around $415 million to sell options worth $300 million. It is, however, expected that the outcome would be lower since the 10 percent surge of Bitcoin came as a surprise.
It is observed that there would be 3,500 buy options (calls) compared to 1,200 sell options (puts) when the price falls within the range of $27,000 and $28,000. Meaning there will be an advantage of $60 million for the buy instruments. The net advantage of $195 million for the buy instruments would be recorded when the price hovers within the range of $28,000 and $29,000. With this, the buy options would be 7,300 and the sell options would be 500. In a price range of $29,000 and $30,000, there would be 8,600 buy options and 100 sell options with the advantage for the buyers moving to $250 million. When Bitcoin trades between $30,000 and $31,000, there would be 10,400 buy options and no sell options. Meaning the profit would be $310 million.
Just recently, Ark Invest’s Cathie Wood also reiterated her $1.4 million prediction for Bitcoin by 2030. According to her, Bitcoin maintains fundamental strength even in an unstable environment, and the surging institutional adoption, higher hash rates, and long-term holder supply of Bitcoin could play a huge role.
Contagion caused by centralized counterparties has elevated Bitcoin’s value propositions: decentralization, auditability, and transparency. Its network fundamentals have strengthened and its holder base has become more long-term focused.
