Bitcoin Traders Bet on Further Rally Despite Overbought Conditions
• Many call options at $65k, $70k, and $75k struck over the weekend on Deribit crypto options exchange, reflecting bullish market views
• Concentration of activity in out-of-the-money calls indicates traders willing to pay premiums for constructive bitcoin outlook
• Positioning in options market has been reliable indicator of impending bitcoin price moves
• Recent flows reminiscent of 2020-21 bull market when traders bought calls at high strikes despite cheap valuations
• Bitcoin nearly doubled since October to $50k, but overbought conditions signal potential for profit-taking or correction