Bitcoin’s price reached a two-month high on Wednesday, taking month-to-date gain to over 13%.
- The top cryptocurrency by market value rose to a high of $12,379 soon before press time – the highest level since Aug. 18, according to CoinDesk's Bitcoin Price Index.
- The rise represents a 3.5% gain on the day.
- Prices are now up over $2,000 from the lows near $10,000 seen in early September.
- "The bullish momentum is certainly picking up with support from large corporations buying into the market," Wayne Chen, CEO, and director of Interlapse Technologies told CoinDesk in a LinkedIn chat.
- Firms like Square, MicroStrategy, and Stone Ridge have recently disclosed bitcoin treasury investments, validating the cryptocurrency's appeal as a store-of-value asset.
- Options market data shows investors are expecting the price rally to continue.
- "Bitcoin is breaking out and the options market is preparing for a bigger rally," Skew's CEO Emmanuel Goh told CoinDesk in a Telegram chat.
- The bullish mood is evident from the negative one-, three-, and six-month put-call skews, which measure the cost of puts relative to that of calls.
- In other words, calls, or bullish bets, are drawing higher prices than puts, or bearish bets – a likely sign of investors positioning for a price rally.
- Notably, the one-month skew fell to -14% on Tuesday, the lowest level since Aug. 1, suggesting the most bullish mood in 2.5-months.
- Bitcoin's immediate resistance is located at $12,476 (August high). A violation there would expose the June 2019 high of $13,800.