Bitcoin Options Traders Anticipate Imminent Breakout Above $74K to New Record Prices

BTC"ready to squeeze higher" with some $1.5 billion worth of shorts concentrated around the $72,000 that can be liquidated, Matrixport noted."Our desk saw strong bullish follow-through with significant call buying for June expiries, indicating positioning in the options market for a decisive break of 74,000 all-time-highs this month," digital asset hedge fund QCP said in a Wednesday market update.

"Options flow was clearly bullish today with big sizes on long BTC OTM call spreads in end June, and to a lower extent end July," institutional crypto derivatives trading network Paradigm said in a Telegram broadcast. Joshua Lim, co-founder of crypto derivatives principal trading firm Arbelos Markets, noted"very concentrated call buying" on Tuesday with about 1100 contracts purchased of June 28 expiration call spreads in $74,000-$80,000 strikes, representing around $80 million notional demand.

A call spread is an options trading strategy in which buys of call options at a lower strike price and are made alongside sales of the same amount of calls at a higher strike price with the same expiry, aiming to profit from a limited price increase.Bitcoin has spent almost three months consolidating since notching an all-time high slightly below $74,000 in mid-March.

A surge above the $72,000 level could induce a short squeeze, Matrixport noted, as there's some $1.5 billion worth of leveraged futures contracts betting on lower prices concentrated around that range that could be liquidated, exacerbating the move higher.in a variety of blockchain and digital asset businesses and significant holdings of digital assets, including bitcoin. CoinDesk operates as an independent subsidiary with an editorial committee to protect journalistic independence.

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