Bitcoin’s Call Open Interest Rises to $19.3B Amidst Caution Signals

Bitcoin’s call open interest increased to $19.3 billion alongside a price rise past $93,000. Despite bullish trends, hedging activity signals caution among traders. The put/call ratio fell to 0.59, while delta skew turned neutral-bearish, indicating mixed market sentiment. Technical charts show significant resistance levels being breached, pointing to a potential trend reversal.

Bitcoin’s options market has seen significant activity, with call open interest reaching $19.3 billion. During this time, Bitcoin’s price surged past $93,000, breaking through critical resistance levels. However, the increase in hedging activity indicates that traders remain cautious, seeking to protect their recent profits amid the bullish outlook.

The recent rise in open interest reflects heightened activity in Bitcoin’s options market. Following a jump from $28.5 billion to $30.7 billion within 24 hours, this surge marks the highest recorded level since late March, coinciding with Bitcoin’s price ascension. An increase in active contracts suggests expanding trader interest and a mix of hedging with speculative strategies.

The put/call ratio has decreased to 0.59, signalling a growing inclination towards call options. By April 22, call open interest surged to $19.3 billion, while put open interest stood at $11.5 billion. A lower ratio indicates a preference for calls, which are commonly employed by traders predicting price increases. Nonetheless, the increase in call options may also reflect profit-taking measures by some traders.

Despite the bullish positioning indicated by the rise in call options, the delta skew reflects a transition to neutral-bearish sentiment. The 25 Delta skew has shown a shift from bullish to slightly bearish across various time frames, reflecting increased demand for puts or call selling. This change suggests some traders are hedging against potential price corrections as the trend continues upward.

Bitcoin’s price breakout has led to significant technical advancements, surpassing various resistance levels. A robust daily candle pushed Bitcoin beyond the $83,000 threshold, breaking Ichimoku Cloud resistance at $88,500, along with the 50 and 200-day moving averages. Analysts note that this breakout indicates a reversal from lower highs, strengthening bullish confidence among traders while highlighting the importance of caution amid climbing prices.