BTC and Ethereum traders remain optimistic about the market's trajectory despite this week's corrective moves that affected digital assets overall, according to CryptoSlate.
According to derivatives platform Derive.xyz, market participants estimate a 22% chance of Ethereum surpassing $5,000 by October 31. Estimates for Bitcoin are even higher: traders are pricing in a 34% chance of rising above $120,000 by the same date.
Longer-term forecasts remain bullish for December.
According to Derive, Ethereum has a 12% chance of breaking above $7,000, while Bitcoin has a 26% chance of rising above $135,000. These estimates demonstrate how traders are positioning themselves around potential catalysts despite short-term turbulence.
The optimism follows a surge in volatility, which saw Bitcoin and Ether retest $110,000 and $4,000, respectively.
According to Derive, record $1.7 billion in liquidations accelerated the move, pushing Ethereum's implied volatility from 57% to nearly 70% on Monday. Bitcoin's volatility also increased, reaching around 30%.
Given that BTC traded with below-average volatility last month, Derive founder Nick Forster told CryptoSlate that October could be a turning point as digital asset treasuries prepare for more aggressive activity.
"Traders are bracing for a significant upside." "BTC is seeing a large accumulation of call options at strikes of $145,000 and further down to $155,000/$170,000, expiring on October 31. Traders are expecting a more than 10% rally in ETH, with a concentration on strikes of $5,000/$5,200," Forster noted.
At the time of writing, Bitcoin was trading at $113,000, having previously hit a two-week low of $111,450.