It seems as though Bitcoin’s price action throughout the early part of 2020 has drastically altered its medium-term prospects, as investors are now widely betting that the ongoing BTC rally extends significantly further.
This is elucidated while looking towards the near-record volume seen on Bitcoin’s options yesterday, which signals that investors are eyeing a mid-term rally for the cryptocurrency.
Bitcoin Options Volume Nears All-Time Highs; Factors & Trends
Since Bitcoin tapped lows of $6,800 in early January, the cryptocurrency has been caught within a firm uptrend that has allowed it to climb as high as $8,900.
Although BTC is currently pushing up against some resistance, its ability to hold steady within the upper-$8,000 region without incurring any type of discernable rejection suggests that the markets may soon see further upside.
It appears as though BTC options traders concur with this assumption, as trading volume on Bitcoin options hit a near-record high yesterday.
Su Zhu, the CEO of Three Arrows Capital, spoke about this near-record volume in a recent tweet, telling his followers that he anticipates the options volume to continue climbing higher throughout 2020.
“Near-record volume on BTC options yesterday, I expect this record to be broken several times over the course of the coming year,” he noted.
https://twitter.com/zhusu/status/1217415840619880449
What Factors Could Propel BTC Higher in 2020?
Because it does seem that traders are anticipating BTC to see further upside throughout the coming twelve months, it is possible that they are looking towards the cryptocurrency’s upcoming mining rewards halving event as one potentially bullish catalyst.
Beyond this historically bullish fundamental event, analysts are also widely noting that Bitcoin’s technical situation has grown increasingly bullish following its strong bounce from the $6,000 region.
Trader’s current bullishness is further elucidated while looking towards the crypto’s futures on prominent Asian exchanges like OKEx.
“March BTC Futures on OKEx going absolutely ham. This coupled with the premium @binance is developing and the presence of frequent large clustered orders makes me thing this rally is largely Asia centric. As such, I’ll be monitoring the same to spot reversal signs,” Hsaka, a prominent crypto analyst, explained in a tweet.
March $BTC Futures on @OKEx going absolutely ham.
This coupled with the premium @binance is developing and the presence of frequent large clustered orders makes me thing this rally is largely Asia centric.
As such, I'll be monitoring the same to spot reversal signs. pic.twitter.com/S9Xy8toLuQ
— Hsaka (@HsakaTrades) January 15, 2020
Assuming that this volume continues to grow in the near-term, it could lead to greater BTC buying pressure that subsequently allows its price to see some steady momentum, although it remains unclear as to how events like the halving will impact this potential growth.
Featured image from Shutterstock.
