Bitcoin Preferred Market Data shows There is a 9% BTC Opportunity To Reach $ 20K By 2020

Activities in the Bitcoin options market indicate BTC has a 9% possibility of hit to $ 20,000 at the end of 2020.

The Bitcoin (BTC) preferred market, largely dominated by Deribit and CME, provides a 9% chance for BTC to rise to the highest level of all time.

In view of Bitcoin’s tendency to see an upward trend of six to eight months after the break, traders in the preferred market have been cautious of the BTC short-term trend.

The data shows that the BTC preferred market tends to rise

In the near future, many traders in Deribit and CME seem optimistic about the BTC price trend.

According to ecoinometric data, Bitcoin’s CME option exchange recorded 22 calls per 1 put. Simply put, for every 22 people who buy BTC, one person sells.

Bitcoin Calls Versus Puts on the CME options exchange. Source: ecoinometrics

The fundamentals of optimism over Bitcoin’s short-term price action by preferred traders are likely to be a consecutive test of the $ 10,000 resistance level.

When an important level is tested three to four times, whether it is support or resistance, it has a high probability of breaking. In the last 11 days, Bitcoin tested $ 10,000 five times, weakening the odds.

Optional traders expect Bitcoin prices to exceed $ 10,000 in the near future.

Why are traders not upgrading in the long run?

Bitcoin prices tend to move in the extreme. There has long been speculation that aggressive buying by whales at high and low points has caused the BTC to see huge price fluctuations.

Optional traders may be uncomfortable making long-term, long-term bets on Bitcoin prices because of the uncertainty in the current situation.

In the previous halving, Bitcoin prices took about six to eight months to start a long-term rally. Thus, only half of May 2020 does not guarantee that BTC prices will reach their highest level.

As such, there are still some positive data supporting the high Bitcoin price forecasts in the fourth quarter of 2020.

Bitcoin is also no longer indicative of excess over the long term. The weekly chart shows that could jump further in the $ 10,000 to $ 11,000 range.

Both the gold cross and the weekly MACD are short-term indicators, which may be the catalyst behind optimism in the options market.

For now, the focus of various factors, including the volatility of Bitcoin such as the current situation caused by the coronavirus outbreak, seems to have led traders to be more cautious in long-term calls.

Source: Cointelegraph

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