Bitcoin (BTC) has achieved its first three-week winning streak since February, signaling a strong bullish sentiment. As call options for $75,000 and beyond surge, speculators are betting on a potential breakout, potentially driving BTC to new all-time highs by the end of 2024.

Bitcoin Hits Three-Week Winning Streak as Traders Bet on a Breakout Beyond $75,000

TradingView, a data source, has reported that Bitcoin (BTC) has achieved its first three-week winning streak since February. The upswing has been characterized by speculators purchasing call options, which provide an asymmetric upside potential exceeding $75,000.

In the seven days leading up to September 29, the cryptocurrency with the highest market value experienced a 3% increase, in addition to the 7% price increase in the previous two weeks. The cryptocurrency's upward trajectory was likely bolstered by China's substantial stimulus announcement and inflows into U.S.-listed spot ETFs, equivalent to more than a month's supply of newly mined BTC.

Dealers observed substantial call purchasing activity at the $75,000 strike price and beyond on the crypto exchange Deribit as prices increased, as the order flow tracking system Amberdata indicated. Additionally, investors sold put options.

"This flow pattern suggests a bullish outlook for spot prices (due to the put selling) while also anticipating an acceleration in price movement," Amberdata's Director of Derivatives, Greg Magadini, said in a note shared with CoinDesk.

Rising Call Option Activity Signals Bitcoin Could Break $75K, Eyeing a Rally Toward $100K

The holder of a call option is granted the right to purchase the underlying asset, BTC, at a predetermined price at a later date, but they are not obligated to do so. A put buyer is adverse, seeking to protect against price declines, while a call buyer is implicitly bullish on the market.

The bullish trend of increased call buying and put selling indicates that prices will likely soon emerge from a six-month-long corrective trend, which veteran analyst Peter Brandt calls the "expanding triangle."

A potential break out would indicate that the broader uptrend from the lows under $30,000 in October 2023 has resumed, per CoinDesk.

"A break above $75K could lead to a swift rally through all-time highs toward $100K, where the last tranche of call buyer activity is concentrated in the December 27, 2024, expiration," Magadini said.