Bitcoin Hits Three-Week Winning Streak as Traders Bet on $75K Breakout

Bitcoin (BTC) has just hit its first three-week winning streak since February. That’s a big deal! According to TradingView, traders are jumping in with a lot of call options, especially around the $75,000 mark.

The leading cryptocurrency saw a rise of over 3% in the week ending September 29. This follows two previous weeks where it also gained more than 7%. What’s driving this? A major stimulus announcement from China and significant inflows into U.S.-listed spot ETFs, which are equivalent to over a month’s supply of newly mined BTC.

As prices climbed, traders noticed a surge in call buying at the $75,000 strike price and even higher on the Deribit exchange. Amberdata tracked this order flow, showing that investors are also selling put options.

Greg Magadini, Amberdata's Director of Derivatives, pointed out, “This flow pattern indicates a bullish sentiment for spot prices due to the put selling, while also suggesting an expectation of increased price movement.”

Now, what’s a call option? It gives the buyer the right, but not the obligation, to purchase BTC at a set price later on. If you buy a call option, you’re generally feeling optimistic about the market. On the flip side, a put option is for those who want to protect themselves against price drops.

The current trend of increased call buying and put selling suggests that traders expect BTC prices to break out of a six-month corrective phase. Veteran analyst Peter Brandt calls this the "expanding triangle."

If BTC breaks above $75,000, it could signal a return to the broader uptrend that started from the October 2023 lows of under $30,000.

Magadini added, “A move above $75K could trigger a rapid rally toward all-time highs, potentially reaching $100K, where significant call buyer activity is concentrated for the December 27, 2024 expiration.”