Bitcoin’s bull move might not be over yet — Here are 3 reasons why
The bullish momentum that propelled Bitcoin (BTC) price to a year-to-date high continues into its third week as the price presses toward the $35,000 handle.
Some notable developments that back the current bullish momentum are:
Still a good amount of liquidity for #bitcoin between current price all the way up to $39,500.
Track it here: https://t.co/s1yivlKw5D pic.twitter.com/2i09F7Z9We
Bitcoin’s options data appears confluent with the perspective that further price upside could be in store and suggests a potential extension of last week’s gamma event culminating with BTC price rallying to $35,280. The data also shows the possibility for a gamma event in the $35,000 to $40,000 range, and investor positioning has shifted accordingly.
In the past week, daily option volumes across the derivatives market surged, leading The Big Picture podcast host Joe Kruy to say:
Adding to the conversation on the Bitcoin options market, Kelly Greer, Head of America Sales at Galaxy said:
From the perspective of technical analysis, traders are eyeballing the bull pennant pattern, which has formed on the daily timeframe, along with the birth of a golden cross.
In the short-term, the catalyzing move to be on the watch for is whether or not a price move through the $36,300 level leads to escalating pressure on shorts, and if this triggers a rapid uptick in spot buying volumes as options and perpetual futures traders are forced to cover their positions or face liquidation.
Essentially, one would see aggregated short liquidations surge as spot volumes peak, a process that is documented in the chart below.
According to Alex Thorn, Head of Firmwide Research at Galaxy, “the Bitcoin gamma squeeze from last week could happen again if BTC/USD moves higher
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