Bitcoin’s recent dip below the $30,000 level is likely just a short-term correction in an otherwise bullish trend, according to Rachel Lin, CEO of derivatives decentralized exchange SynFutures. “This technical drop may induce concern, given the robust uptrend over the past six months, it’s sensible to consider this merely a short-term correction,” she said.
Lin noted that there is a “conspicuous lack of $30,000 call [option] selling from bearish traders,” which suggests that they don’t foresee the $30,000 level transforming into significant resistance in the near term. The $31,000 call option continues to attract high open interest from traders, indicating that it poses a “potent resistance” in case of a bounce in BTC’s price.
Options are trading instruments that give investors the right to buy or sell an underlying asset at a set price at a later date. Singapore-based crypto services provider Matrixport advised investors to sell spot BTC and buy call options instead to optimize returns at a time when volatility is suppressed in the crypto market.
The CoinDesk Bitcoin Price Index is currently trading at $29,350, down 1.5% over the week.