After some volatility following the false news of spot Bitcoin ETF approval, the BTC price has been consolidating above the $28,000 level. On one hand, there are concerns about macro developments while on the other hand, there’s optimism with the spot Bitcoin ETF coming.

A Look At the Bitcoin Options Data

Also, the Bitcoin options data shows that the BTC price longs are gaining strength. The options market data indicates growing confidence in longer-term Bitcoin price increases. Today, more than 10,000 BTC block call options were traded. It has a combined value of nearly $300 million, representing over 40% of the day’s total options activity. The dominant strategy involved a sell BTC-3NOV23-29000-C and a buy BTC-29DEC23-34000-C diagonal spread, as per data shared by GreeksLive.

This spread is noteworthy as it involves selling short-term at-the-money (ATM) calls while purchasing longer-term out-of-the-money (OTM) calls, using the premium received from the sale. Although it may not imply immediate bullishness for Bitcoin in the short term, it clearly reflects a bullish outlook for Bitcoin’s long-term prospects.

What’s Next About BTC Price?

The BTC Price has been showing strength recently despite the pump and dump earlier this week. Bitcoin has held well above $28,000 along with optimism growing around the approval of the spot Bitcoin ETF.

Popular crypto analyst Michael van de Poppe stated that Bitcoin’s price isn’t displaying a strong follow-through at the moment. He expects a period of consolidation in this price range for a few days would be preferable before any further movement.

It appears that some liquidity needs to be cleared on the long side, which could lead to a test around the $27,600 to $27,800 range. Key support zones are at both $27,700 and $27,300, indicating potential areas of interest for long positions.

A pivotal support area for Bitcoin, spanning from $26,700 to $26,285, emerged as a battleground where bulls and bears fiercely contested. The support levels within this zone held great significance as they marked a decisive juncture for Bitcoin’s short-term direction

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Bhushan is a FinTech enthusiast and holds a good flair in understanding financial markets. His interest in economics and finance draw his attention towards the new emerging Blockchain Technology and Cryptocurrency markets. He is continuously in a learning process and keeps himself motivated by sharing his acquired knowledge. In free time he reads thriller fictions novels and sometimes explore his culinary skills.

The presented content may include the personal opinion of the author and is subject to market condition. Do your market research before investing in cryptocurrencies. The author or the publication does not hold any responsibility for your personal financial loss.