Bitcoin price continues to drop, but how are pro BTC traders positioned?
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Bitcoin (
Options data confirms that some whales are not buying into the rally
To determine whether traders were caught off-guard and currently hold short positions underwater, analysts should examine the balance between call (buy) and put (sell) options. A growing demand for put options typically indicates traders focusing on neutral-to-bearish price strategies.
Data from Bitcoin options at OKX reveals an increasing demand for puts relative to calls. This suggests that these whales and market makers might not have anticipated the price rally. Still, traders were not betting on a price decline as the indicator favored the call options in terms of volume. An excess demand for put (sell) options would have moved the metric above 1.0.
Bitcoin’s rally toward $44,000 appears healthy, as no excessive leverage has been deployed. However, some significant players were taken by surprise, reducing their leverage longs and showing increased demand for put options simultaneously.
As Bitcoin’s price remains above $42,000 in anticipation of a potential spot ETF approval in early January, the incentives for bulls to pressure those whales who chose not to participate in the recent rally grow stronger.
This article is for general information purposes and is not intended to be and should not be taken as legal or investment advice. The views, thoughts, and opinions expressed here are the author’s alone and do not necessarily reflect or represent the views and opinions of Cointelegraph.
