Crypto investors may be underexposed to Bitcoin, especially as option traders grow more bullish on the asset, according to 10x Research head Markus Thielen.
“We remain constructive, especially as many traders appear underpositioned following last month’s option expiry, which led to significant exposure roll-off,” Thielen told Cointelegraph on Wednesday, explaining there’s a chance Bitcoin (BTC) could reach $133,000 in September.
“Traders are now predominantly buying calls, signaling they may be underexposed to further upside,” Thielen said in a market report on the same day.
Bitcoin bullish trend model turns bullish
Bitcoin clocked a new all-time high on Wednesday, reaching $112,000.
According to Thielen, 10x Research’s Bitcoin trend model flipped bullish on June 29, and said the recent breakout could carry momentum through to September.
“Our trading signals suggest that this short-term breakout carries a 60% probability of further upside over the next two months, with historical analogs pointing to gains of around +20%,” he said.
At Bitcoin’s current price of $111,000, a 20% move higher would place BTC near $133,000, according to CoinMarketCap data.
“This implies Bitcoin may be transitioning into a higher trading range,” he said.
Several catalysts could push Bitcoin further. Thielen pointed to the upcoming US Consumer Price Index print on July 15, which market participants expect to be “benign.”
He also pointed to a “bullish policy backdrop” during the upcoming US crypto week.
Bitcoin’s next move could “define this quarter”
Although Q3 is typically Bitcoin’s weakest quarter, averaging just a 5.84% return since 2013, according to CoinGlass, Thielen believes this time could be different.
“Traders on the sidelines risk missing the move that could define this quarter,” Thielen said.
“Bitcoin is breaking out, fueled by relentless ETF demand and a series of policy catalysts on the horizon,” Thielen added. US-based spot Bitcoin ETFs posted $215.7 million inflows on Wednesday, according to Farside data.
Thielen is not alone in his thinking about Bitcoin. Crypto trader Jelle said in an X post on Wednesday, “Bitcoin is taking off.”
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“Quite some time to go before this candle closes. I would love to see it close in price discovery to take away all bear arguments,” Jelle said.
Crypto analyst Rekt Capital said, “The Bitcoin downtrend is over.”
Meanwhile, crypto analyst Matthew Hyland warned that “Max pain [is] coming” for those who sit on the sidelines, echoing a prediction he made in May that investors were ignoring a buy-the-dip opportunity similar to how they did five years ago.
“The market handed everyone 2020 all over again, yet so many fumbled it at the very bottom,” Hyland said.
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This article does not contain investment advice or recommendations. Every investment and trading move involves risk, and readers should conduct their own research when making a decision.
