Bitcoin rose to $97,600 last week, but questions have been raised about whether it truly has the strength to continue higher. The question is whether it can continue to rise.
Glassnode analyzed how the options market—bets on further price gains—behaved as Bitcoin approached $97,600. Short-dated call option activity rose significantly as traders sought near-term profits.
In fact, the ratio of option trades fell from 1 to 0.4, signaling a surge in call option activity. Indicators looking one week ahead turned neutral, but those with a one-month or three-month horizon remained tilted toward concerns about price declines.
The market dynamics when prices rose were unusual. Usually, when prices rise sharply, there are more buyers of volatility, but last week selling pressure dominated.
Glassnode explained that for Bitcoin to re-enter a genuine bull market above $97,600, investor confidence must be confirmed across all tenors. However, last week’s moves did not meet that condition.
As of the afternoon of the 24th Korea time, Bitcoin was trading below $90,000. Looking ahead, Glassnode’s analysis suggests that whether Bitcoin can challenge $97,600 again will hinge on how much long-term investors’ worries about declines ease.
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