The most popular bitcoin call option has seen a significant shift in positioning that could impact its ascent above $70,000. The $70,000 strike has replaced the $80,000 call as the most popular play, with open interest of $1.63 billion, according to Metrics data.
This change implies that the ceiling for bitcoin's price range has dropped by $10,000, from $80,000 to $70,000. The $60,000 put is still the most sought-after downside bet.
According to Imran Lakha, founder of Options Insights, dealers hold a 'net long gamma exposure' above $70,000, meaning they would short or sell into strength above $70,000 to stay neutral or hedged. This could act as a brake on bitcoin's price increase once it reaches the $70,000 mark.
Bitcoin was recently trading near $64,100, down nearly 1% since midnight UTC.