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Bitcoin’s price incurred some soaring momentum today that allowed it to rally as high as $10,900 before facing some insurmountable selling pressure.
The cryptocurrency is now consolidating as buyers attempt to garner greater support.
It does appear to be a growing possibility that buyers send BTC into the $11,000 region in the near-term, as this latest movement marked a notable breakout.
Despite the strength that the benchmark cryptocurrency is currently flashing, it is important to note that one fragment of the market is not convinced that this will be enough to propel BTC up towards its all-time highs of $20,000.
According to data, the BTC options market is only pricing in a 9% chance that it will be trading at $20,000 or higher by the end of the year.
These odds are rather low considering Bitcoin’s technical strength, as analysts are now noting that there’s a decent chance that this move marks the start of something much larger.
BTC Options Market Not Confident in Bitcoin’s Uptrend
Earlier today, Bitcoin’s price rocketed towards $11,000 in a sharp movement that was driven by an influx of buying pressure.
Sellers guarded this level and stopped it from being successfully surmounted, causing BTC to consolidate within the upper-$10,000 region for an extended period.
Despite the present strength seen by the digital asset, options traders are still pricing in a low probability of Bitcoin setting fresh all-time highs by the end of 2020.
According to data from the analytics platform Skew, the probability of BTC being above $20,000 by the end of December 2020 is 9%. This marks a jump from where it was a few weeks ago but remains rather low.
Image Courtesy of Skew.
BTC’s Technical Strength Tells a Far More Bullish Story
Based on the technical strength generated as a result of this latest push higher, it appears that options traders may be underestimating Bitcoin’s mid-term outlook.
One analyst noted that this latest push higher marked the first break above a descending trendline from 2017 that the cryptocurrency has seen.
He notes that indicates that today’s rally could mark the start of “something truly massive.”
“Would you believe me if I told you this is merely the beginning of something truly massive?”
Image Courtesy of Mohit Sorout. Chart via TradingView.
It appears that $11,000 is the next level to watch closely. A break above here could signal that BTC’s uptrend is about to turn parabolic.
Featured image from Unsplash. Charts and pricing data from TradingView.