Bitcoin could see a new all-time high within two weeks: Bitfinex’s Head of Derivatives
Bitcoin took 15 days to reach new all-time highs after a steep correction in the last bull cycle, but things are moving faster this time.
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Bitcoin’s (BTC) price registered a new all-time high on Mar. 5 and swiftly crashed 17% to the region below $60,000. However, a swift recovery occurred, and BTC is valued at $67,125.22 at the time of writing. Jag Kooner, Head of Derivatives at Bitfinex, assesses that the market could soon see Bitcoin registering new price peaks.
Kooner points out that the options market saw a significant temporary rise in call option open interest (OI) for strike prices above $100,000 for the first time in history. The current OI for call options above this strike price is close to $850 million, although most of these have very long-dated expiries.
“Even though several traders and investors are panicking after the subsequent flash crash to sub $60,000 levels, this just mirrors the price action in 2020 where BTC moved past its previous cycle high around $19,890 briefly and moved down 15 percent immediately, causing a large number of long liquidations,” Kooner adds.
On that cycle, BTC took around 15 days to move back past the new high in 2020. However, Bitfinex’s Head of Derivatives expects a faster recovery this time, considering the pace with which Bitcoin moved higher this cycle.
“As for market fundamentals, this dip allowed for an OI flush, wiping $4.5 billion worth of open positions from the market. Funding rates that were as high as 130 percent on some major exchanges have also settled down. This is healthy for a BTC uptrend,” Kooner concludes.
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