Cryptocurrencies have since recovered earlier this year, with Bitcoin BTC/USD Registering a return of 39.48%. However, bitcoin bears appear to have bet that the Apex coin will not surpass $24,000 by Friday. And that has paid off so far.

What happened: Options data for Friday’s expiry shows maximum open interest on the call side at $24,000, suggesting that smart money – aka professional trader bets – appears to be setting this as near-term resistance.

Also read: Best FTX Alternatives: How to Keep Your Crypto Safe

The strategy: The “Bear Call Spread” is a bearish strategy where a trader earns net credit by shorting or selling a lower-leg call option while simultaneously buying a higher-leg call. This higher leg call buy acts as a hedge in the event of a sudden rise in asset price while reducing the margin money one needs to park to short the first leg.

option data Delta Exchange shows that Friday’s expiring $24,000 Bitcoin call was trading at just under $430 on Jan. 21, when Apex coin had hit a short-term high of around $23,278. Professional traders appear to have shorted the $24,000 call to levels near $430 at the top end. Those who took the bear call spread with the $24,500 call would have bought the latter call at levels near $308. This gives a spread of $122.

Benefit: Bitcoin has been trading relatively flat for the past week and has failed to surpass $24,000. Based on current option prices, the spread between these calls is currently only $37. This means that Bitcoin bears who have opted for the bear call spread are already sitting on $85 in profits. one Remarkable thing about Bitcoin Options, the bid-ask spread is wide and it may not necessarily be possible to get the best prices unless one uses a pricing formula and waits for the right levels and volumes to initiate the trade.

As the current open interest levels also show that the bears are continuing…