Analysts at Glassnode have observed a concentration of premiums on bitcoin options within the $115,000 to $130,000 range. This indicates that traders are betting on further price increases for the asset.
The demand for call options is outpacing puts, suggesting a predominance of bullish sentiment.
This trend persists even after a recent wave of liquidations in the futures market. Experts believe investors view the price dip as a “leverage reset” rather than a shift in the long-term trend.
A Positive Signal
Vetle Lunde, Head of Research at K33, considers the current drop in bitcoin’s price a good entry point into the market, according to CoinDesk. He believes the asset will stabilize following the large-scale liquidation of leveraged positions.
“Following the recent leverage purge, we remain bullish on the leading cryptocurrency, though patience remains key,” the expert wrote.
Lunde noted that in the short term, liquidity might remain low as traders recover from forced sales. However, the analyst emphasized that similar past events have often marked market bottoms.
He stated that current price levels are attractive for increasing activity in the spot market.
“We find current levels attractive for building spot BTC positions as leverage has been aggressively flushed out,” he declared.
Among other positive factors, the expert highlighted strong institutional demand, expectations of easing monetary policy, and upcoming catalysts related to ETFs. In his view, the situation is conducive to the gradual accumulation of the asset.
Earlier, trader Peter Brandt stated that bitcoin’s price will exceed $125,000 after another decline.