Will BTC bulls turn out to be right or will bears have the last laugh?
- The increasing number of Bitcoin call options could be considered an addition to the bullish market sentiment.
- Miners succumb to sell pressure as miner difficulty increases.
Speculations are on the rise as Bitcoin [BTC] falls from the $30,000 mark. Despite high speculation and FUD around BTC, traders’ behavior indicates optimism.
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What’s the call?
According to recent data provided by GeeksLive, it was seen that 25,000 BTC options are about to expire with a Put Call Ratio of 0.7. This implied that a significant number of Bitcoin options contracts, which allow the holder to purchase or sell BTC at a specific price but not the obligation, are approaching their expiration date.
A Put to Call ratio of 0.7 indicated that there are more call options than put options, which can be seen as a bullish signal. The max pain point was $29,000. This refers to the price at which the options market as a whole would experience the most pain or the largest loss. In this case, it is $29,000, which suggested that there may be support for Bitcoin around that price level.
The notational value of the options contracts combined was $0.72 billion. This is the total value of the options contracts at their face value, assuming they were all exercised at the current market price. Additionally, $0.72 billion is a significant amount of money and may have an impact on the Bitcoin market depending on how the options are exercised.
Furthermore, this bullish behavior was observed from holders as well. According to Glassnode’s data, addresses with more than 0.1 Bitcoins were accumulating increasingly.
📈 #Bitcoin $BTC Number of Addresses Holding 0.1+ Coins just reached an ATH of 4,311,947
View metric:https://t.co/hZY8dBLpzX pic.twitter.com/O1rBNGspfL
— glassnode alerts (@glassnodealerts) April 19, 2023
Miners move differently
However, the same behavior wasn’t observed from miners. Miner outflow multiple, which measures the amount of Bitcoin transferred from miners’ wallets to exchanges, surged to an 11-month high of 1.070.
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This indicated that miners are likely selling their Bitcoin holdings, possibly due to the recent increase in mining difficulty. As mining difficulty reaches an all-time high, it becomes more challenging for miners to earn new Bitcoin rewards. This may force them to sell some of their existing holdings to cover their operational costs.
The increase in miner outflow may also be an indication of miner sentiment. If miners believe that the market is overvalued or likely to experience a downturn, they may continue to choose to sell their Bitcoin. This would be in anticipation of a market correction. Furthermore, it could lead to increased selling pressure and potentially lower Bitcoin prices in the short term.