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    Bitcoin price target: What should you do now that Bitcoin has finally reclaimed record highs?

    MUMBAI: It took more than 150 days but Bitcoin is back at record high levels and setting the investment world on fire. For investors, who accumulated the coin during the precipitated fall in May-June, the accumulated profits are substantial.

    The price of Bitcoin soared to $66,930.4 on Wednesday evening but fell more than 3 per cent immediately afterwards on some profit booking.

    The launch of the first-ever Bitcoin futures-backed exchange-traded fund in the US has rejuvenated the cryptocurrency universe and helped the biggest cryptocurrency to break out of its range of $52,000-$58,000 to reclaim its record high.



    However, with record high territory come questions of whether one should book profits or make incremental investments or just sit tight.

    A look at the Bitcoin options market could provide a clue on how to go about your own positioning in the cryptocurrency. Ever since the news broke that the US Securities Exchange Commission would be approving a Bitcoin ETF, the options market on Bitcoin has exploded.

    More tellingly, most of the positions being added by traders are beyond the $100,000-mark for call options expiring on December 31. That indicates, traders expect the Bitcoin ETF approval to spark a new rally in the market led by buying from institutional investors.

    “The open interest in call options dwarfs that in put options, aligning with the overall bullish market sentiment,” said Glassnode in its latest newsletter.

    However, Glassnode noted that the supply of Bitcoin from long-term HODLers is increasing for the first time this year providing evidence that they are looking at realizing some of their paper profits. This coupled with the fact that volumes on Bitcoin futures are declining with the rise in open interest merits some caution in the near-term.

    “Whilst the market at large remains relatively healthy, and demand is meeting LTH (long-term HODLers) sell-side, exercising some caution given the elevated leverage across both futures and options markets is likely prudent,” Glassnode said.

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