Crypto company CEO: Bitcoin price is stuck below $30,000, but not for long

The bitcoin price has been stuck below the price of about $ 31,000 since the end of June. Last Monday, the price even fell to just over $ 29,000, which gave speculators reason to keep a further fall in the offing. Yet the CEO of a decentralized finance (DeFi) company thinks otherwise.

Will bitcoin options lead to a new bullish trend?

In a report, Rachel Lin, CEO of crypto derivatives exchange SynFutures, stated according to CoinDesk that the fall of bitcoin (BTC) presumably was a quick correction in an uptrend. So the $30,000 to $31,000 mark would only be a short-term bump.

According to Lin, the resistance comes from a large amount of open call option contracts around $31,000. But traders who think the price is going to fall have around An price of $ 30,000 is very little orders are open. That suggests that remarkably few traders think the price is going to fall. There is a gap between these price levels with remarkably few outstanding contracts.

BTC volatility ahead

Option contracts have great built-in leverage – in general, the total value of a contract is 100 times your own investment. As a result, you can quickly earn a lot of money. The flip side of this is that with commonly used options, the contract is worthless after the expiration date. So you have to be good with timing.

It should also be said that options are not only used to speculate on price movements. Reducing risk is also an important goal. You know what you can lose – namely 100% of the value of the contract.

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The fact that many call options are open around $31,000 suggests that the price could rise even further once this level is reached. However, the exact opposite is also possible. Because option contracts expire over time, the market can actually try to prevent the price from reaching many prices of popular option contracts. Thus, the contracts end up worthless.

One thing is certain: the lack of large price movements could cause much more volatility in the crypto market in the coming period.

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