Recent analysis suggests that Bitcoin (BTC) could be on the verge of further gains, especially given the current inflationary environment in the United States.
Key Insights
Bitcoin’s 200-week simple moving average (SMA) is presently well below the peak observed during the 2021 bull market.
Historical trends indicate that bull markets usually close when the 200-week SMA matches the previous highs set in earlier bullish cycles.
Current price movements in Bitcoin paint a picture of potential growth, driven by significant market indicators against a backdrop of rising inflation in the U.S. economy.
According to the latest figures from TradingView, the 200-week SMA for Bitcoin rests around $44,200.
Although this figure is an all-time high for this average, it still trails the exhilarating peak of $69,000 reached in November 2021.
Market Indicators
This gap is essential; historical data demonstrates that the conclusion of bull markets often occurs when the 200-week SMA aligns with earlier peak prices from preceding upward trends.
If past patterns hold true, Bitcoin’s current trading range, which fluctuates between $90,000 and $110,000, could very well lead to positive outcomes, paving the way for future price surges.
This optimistic perspective is further reinforced by data from the options market at Deribit, where a surge in bullish sentiment is palpable.
Options with longer durations—three months or more—show a clear preference for call options over put options.
This trend indicates a widespread expectation among market participants for rising Bitcoin prices.
Call Options Surge
Moreover, there’s notable open interest primarily concentrated on call options with strike prices above Bitcoin’s current value of $96,700.
Notably, a call option pegged at the $120,000 strike has emerged as the most popular choice, with an impressive notional open interest exceeding $1.8 billion, further underscoring the bullish outlook within the market.
In summary, various indicators and market sentiments hint that Bitcoin’s rise might not be finished just yet, as historical trends related to the 200-week SMA continue to offer hope for aspiring investors.
Source: Coindesk
