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Breaking News: Coinbase Confirms DOJ Investigation Following Major Security Incident

Bitcoin Options Market Signals Further Upside Potential For BTC Price: New ATH Soon?

Opeyemi Sule
Opeyemi Sule
3 weeks ago
2 mins read
Bitcoin

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Following the return above $100,000 in the previous week, Bitcoin has fought well to maintain its hold above the six-figure mark in recent days. While the flagship cryptocurrency retains its six-figure valuation, there’s still some momentum lacking in its price action, as spotlighted by last week’s performance. 

According to recent analysis, the sluggishness and apparent indecision in the BTC market can be attributed to significant selling pressure in the derivatives market. Interestingly, the latest on-chain data shows that the Bitcoin price still has room for additional growth.

Options Market Data Shows Shift In Trader Sentiment

In a May 16 post on the X platform, blockchain analytics firm Glassnode shared fresh on-chain insights suggesting a rise in bullish sentiment amongst Bitcoin options traders. The relevant indicator here is the 1-month 25 Delta Skew, which compares the implied volatility of bullish bets (call options) to the bearish bets (put options).

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When the 1-month 25 Delta Skew is in the positive territory, it implies that puts have higher implied volatility than calls. This trend is often associated with a bullish sentiment where traders are more worried about the asset price falling and are thus paying a premium for downside protection.

On the other hand, a negative value for the 1-month 25 Delta Skew indicator signals that calls are more expensive than puts. This suggests that traders are more willing to bet on the price of Bitcoin moving higher than for protection against downside exposure.

Bitcoin
Source: @glassnode on X

According to data from Glassnode, the 1-month 25 Delta Skew metric recently witnessed a drop to around -6.1%. This decline, the analytics platform noted, signifies that call options now carry higher implied volatility compared to put options. 

This options market trend means that there is now rising bullish sentiment amongst Bitcoin traders, as they lean more into betting on the BTC price rising. Glassnode also pointed out that this increasing bullish sentiment reflects a risk-on environment, where traders and investors are more willing to risk their funds. 

Historically, a negative 25 Delta Skew is a strong bullish sentiment indicator, as it usually precedes further appreciation of the Bitcoin price. Moreover, current options data not only supports BTC’s upward movement, but could also serve as a positive catalyst for more growth as additional long positions enter the market.

Bitcoin Price At A Glance 

As of this writing, the price of BTC stands at around $102,800, reflecting an over 1% decline in the past 24 hours.

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The price of BTC on the daily timeframe | Source: BTCUSDT chart on TradingView
Featured image from iStock, chart from TradingView
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Opeyemi Sule
Opeyemi Sule

Opeyemi Sule

Opeyemi is a proficient writer and enthusiast in the exciting and unique cryptocurrency realm. While the digital asset industry was not his first choice, he has remained absolutely drawn since making a foray into the space over two years. Now, Opeyemi takes pride in creating unique pieces unraveling the complexities of blockchain technology and sharing insights on the latest trends in the world of cryptocurrencies.

Read more

Opeyemi savors his attraction to the crypto market, which explains why he spends the better parts of his day looking through different price charts. “Looking” is a rather simple way to describe analyzing and interpreting various price patterns and chart formations. However, it appears that is not Opeyemi’s favorite part - in fact, far from it.

Being able to connect what happens on a price chart to on-chain movements and blockchain activities is what keeps Opeyemi ticking. “This emphasizes the intricacies of blockchain technology and the cryptocurrency market,” he would say. Most importantly, Opeyemi thinks of any market insights as the gospel, while recognizing that he is only a messenger.

When he is not clicking away at his keyboard, Opeyemi is most definitely listening to music, playing games, reading a book, or scrolling through X. He likes to think he is not loyal to a particular genre of music, which can be true on many days. However, the fast-rising Afrobeats genre is a staple in Opeyemi’s Spotify Daily Mix.

Meanwhile, Opeyemi is a voracious reader who enjoys a wide category of books - ranging from science fiction, fantasy, and historical, to even romance. He believes that authors like George R. R. Martin and J. K.
Rowling are the greatest of all time when it comes to putting pen to paper. Opeyemi believes his reading of the Harry Potter series twice is proof of that.

Indeed, Opeyemi enjoys spending most of his time within the four walls of his home. However, he also sometimes finds solace in the company of his friends at a bar, a restaurant, or even on a stroll. In essence, Opeyemi’s ambivert (haha! been searching for an opportunity to use the word to describe myself) nature makes him a social chameleon who is able to quickly adapt to different settings.

Opeyemi recognizes the need to constantly develop oneself in order to stay afloat in a competitive and ever-evolving market like crypto. For this reason, he is always in learning mode, ready to pick up the slightest lesson from every situation. Opeyemi is efficient and likes to deliver all that is required of him in time - he believes that “whatever is worth doing at all is worth doing well.” Hence, you will always find him striving to be better.

Ultimately, Opeyemi is a good writer and an even better person who is trying to shed light on an exciting world phenomenon - cryptocurrency. He goes to bed every day with a smile of satisfaction on his face, knowing that he has done his bit of the holy assignment - spreading the crypto gospel to the rest of the world.

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Disclaimer: The information found on NewsBTC is for educational purposes only. It does not represent the opinions of NewsBTC on whether to buy, sell or hold any investments and naturally investing carries risks. You are advised to conduct your own research before making any investment decisions. Use information provided on this website entirely at your own risk.

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Reason to trust

Strict editorial policy that focuses on accuracy, relevance, and impartiality
Created by industry experts and meticulously reviewed
The highest standards in reporting and publishing
How Our News is Made

Strict editorial policy that focuses on accuracy, relevance, and impartiality

Ad discliamer

Morbi pretium leo et nisl aliquam mollis. Quisque arcu lorem, ultricies quis pellentesque nec, ullamcorper eu odio.

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Disclaimer: The information found on NewsBTC is for educational purposes only. It does not represent the opinions of NewsBTC on whether to buy, sell or hold any investments and naturally investing carries risks. You are advised to conduct your own research before making any investment decisions. Use information provided on this website entirely at your own risk.

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