Bitcoin now has a 7% chance of beating $20K highs in the next 2 months

Published at: Oct. 22, 2020

Bitcoin (BTC) has a 7% probability of beating its $20,000 all-time highs by the end of this year, data shows.

According to data from on-chain analytics resource Skew, as of Oct. 22, Bitcoin options were moving in favor of higher prices continuing in 2020.

BTC odds “repricing quickly”

At press time, the likelihood of BTC/USD being $20,000 or higher by Dec. 31, 2020 was 7%, with 11% for $18,000.

By March 2021, more bets said that Bitcoin would have reclaimed $20,000 (14%), while the figure for June 2021 was 18%.

On social media, Skew said that the probability data was “repricing quickly” in the aftermath of Bitcoin hitting $13,200.

Bitcoin options price probability chart. Source: Skew

As Cointelegraph reported, the mood among institutional investors remains skewed to the upside despite the higher price levels. The latest commitments of traders (COT) report from CME Group, for example, showed that institutions were overwhelmingly long rather than short BTC.

On Wednesday, statistician Willy Woo noted that huge amounts of liquidity had been removed from speculative arenas by investors keen to store coins for the long term. Woo described the event, which involved 250,000 BTC ($3.24 billion), as “the mother of all scoop-ups.”

“Where did the supply come from? 250k coins ($2b+ USD) have been scooped off the speculative stock on spot exchanges into HODL,” he tweeted.

“This is where the supply has come from thus far, and it was the mother of all scoop ups, previous bull runs were powered by iddy biddy tiny scoops.”

A thoroughly organic pump

The organic nature of the behavior which led to the price rise has not gone unnoticed. For Charles Edwards, founder of digital asset manager Capriole, this was a unique phenomenon in Bitcoin’s twelve-year lifespan.

“This pump is organically spot driven. There is almost no order book resistance,” he tweeted on Thursday.

“Yes things can change quickly, it's crypto. But this is a very healthy move. Something we have never seen before at 12K plus #bitcoin.”

Nevertheless, Bitcoin futures trading volume has also nearly tripled in the past two days compared to levels seen earlier this month as the price of Bitcoin overcame $12,000. 

Tags
Related Posts
Is excessive bullish optimism behind Bitcoin’s drop below $60K?
Bitcoin (BTC) has a long history of forming local tops when events that are anticipated by the market occur. The recent Bitcoin exchange-traded fund (ETF) launch on Oct. 19 was no different and led to a 53% monthly rally to an all-time high at $67,000. Now that the price has briefly fallen below $60,000, investors are attempting to understand if the 10% correction was a healthy short-term profit taking or the end of the bull run. To determine this, traders need to analyze BTC's previous price activity to evaluate the possible similarities. The chart above depicts the day of a …
Etf / Oct. 24, 2021
This key Bitcoin price indicator shows pro traders buying each dip
Bitcoin (BTC) might have failed to sustain the $42,000 support, and for many, this is a slightly bearish sign. Interestingly, the downward move occurred shortly after Saudi Aramco, Saudi Arabia’s largest oil exporter, denied having claimed to start mining Bitcoin. Top traders at exchanges seized the opportunity to add leverage-long positions, a clear bullishness indicator. Furthermore, margin traders have been increasing their stablecoin borrowing, indicating that whales and professional traders are expecting more upside from cryptocurrencies. The 24% weekly rally that took Bitcoin from $34,000 to its highest level since May 20 was fueled by a 30% surge in the …
Bitcoin / Aug. 3, 2021
Another $1 billion wipeout: Why is Bitcoin seeing extreme price moves?
Nearly $1 billion worth of Bitcoin (BTC) futures contracts were liquidated on Jan. 13, a day after the big shakeout. The continuous loop of liquidations is causing extreme volatility and large price swings in the cryptocurrency market. What are futures liquidations, and why are so many Bitcoin positions being liquidated? In the Bitcoin futures market, traders borrow additional capital to bet against or for Bitcoin. The technical term for this is leverage, and when traders use high leverage, the liquidation threshold gets tighter. For example, if a trader borrows 10 times the initial capital, a 10% price move to the …
Bitcoin / Jan. 13, 2021
'Looks Bad' — Bitcoin Futures Echo Days Before March Crash, Says Trader
Bitcoin (BTC) futures were worrying analysts on July 10 as volume data suggested serious weakness and the potential for a major pullback. Uploading a weekly chart of CME Group’s Bitcoin futures to Twitter, Cointelegraph Markets analyst filbfilb did not mince his words describing the current climate. Filbfilb: BTC futures “almost identical” to March “Looks bad,” he summarized, noting that a volume indicator had returned to an identical setup as the week before Bitcoin crashed to $3,600 in March. “Almost identical positioning as the big drop last time and a clear descending triangle full of wicks at resistance, trading below (point …
Bitcoin / July 10, 2020
Bitcoin bulls remain in charge even in the face of increasing regulatory FUD
Bitcoin (BTC) price broke above $25,000 on Feb. 21, accruing a 53% year-to-date gain at the time, it made sense to expect the rally to continue after U.S. retail sales data from the previous week vastly surpassed the market consensus. This fuelled investors' hope for a soft landing and the possible aversion of a recession in the U.S. economy. The apex of the U.S. Federal Reserve’s strategy success would be increasing interest rates and scaling back its $9 trillion balance sheet reduction without significatively damaging the economy. If that miracle happens, the outcome would benefit risk assets, including stocks, commodities …
Bitcoin / Feb. 27, 2023