The cryptocurrency options market has shown a predominantly bullish sentiment as of May 12, 2025, according to the latest Community Daily Digest from Greeks.live. This update, shared via their official social media channels, highlights a strong inclination among traders to position for upside price movements in Bitcoin and other major cryptocurrencies, while still remaining cautious of potential volatility and short-term pullbacks. The key price level under close scrutiny is 106,000 USD for Bitcoin, a threshold that could signal either a breakout or resistance depending on market dynamics. As of 8:00 AM UTC on May 12, 2025, Bitcoin was trading at approximately 104,500 USD on major exchanges like Binance, reflecting a 2.3% increase over the previous 24 hours, with trading volume spiking to over 35 billion USD across spot markets, as reported by CoinMarketCap data. Ethereum, the second-largest cryptocurrency by market cap, also saw positive momentum, trading at 4,200 USD, up 1.8% in the same timeframe, with a daily volume of around 18 billion USD. This bullish sentiment aligns with broader market trends, including a surge in institutional interest as evidenced by rising open interest in Bitcoin options contracts on platforms like Deribit, which reported a 15% increase in open interest to 22 billion USD as of May 11, 2025. The combination of retail and institutional activity suggests a market poised for potential upward movement, though traders are keenly aware of historical resistance levels and macroeconomic factors that could trigger reversals.

From a trading perspective, the bullish sentiment reported by Greeks.live offers several actionable opportunities for crypto traders. The focus on the 106,000 USD level for Bitcoin presents a critical pivot point; a break above this level with sustained volume could confirm a bullish trend, potentially targeting 110,000 USD in the near term. Conversely, failure to breach this resistance could lead to a pullback toward support levels near 100,000 USD, a scenario traders are preparing for with stop-loss orders and put options, as noted in the Greeks.live digest on May 12, 2025. Ethereum’s correlation with Bitcoin remains strong, with a 0.92 correlation coefficient over the past 30 days, suggesting that ETH could follow BTC’s lead with a potential target of 4,500 USD if bullish momentum continues. Trading pairs such as BTC/USDT and ETH/USDT on Binance saw significant volume increases, with BTC/USDT recording 12 billion USD in trades by 10:00 AM UTC on May 12, 2025, indicating high liquidity and trader interest. Additionally, on-chain metrics from Glassnode reveal a 7% uptick in Bitcoin wallet addresses holding over 1 BTC as of May 11, 2025, signaling accumulation by larger players. For traders, this suggests a potential long position on Bitcoin with a tight stop-loss below 102,000 USD, while keeping an eye on volatility indices like the Bitcoin IV (Implied Volatility), which rose to 65% on Deribit as of May 12, 2025, hinting at expected price swings.

Technical indicators further support the bullish outlook while underscoring the risks of volatility. The Relative Strength Index (RSI) for Bitcoin on the daily chart stood at 62 as of 12:00 PM UTC on May 12, 2025, indicating the asset is approaching overbought territory but still has room for upward movement before hitting critical levels above 70. Moving averages also paint a positive picture, with Bitcoin trading above both its 50-day and 200-day moving averages at 98,000 USD and 95,000 USD, respectively, based on TradingView data accessed on May 12, 2025. Ethereum mirrors this trend, with an RSI of 60 and trading above its 50-day moving average of 3,900 USD. Volume analysis shows a clear uptrend, with Bitcoin’s 24-hour spot volume on Coinbase reaching 8 billion USD by 2:00 PM UTC on May 12, 2025, a 10% increase from the previous day. In terms of market correlations, Bitcoin’s price movement continues to show a moderate positive correlation of 0.45 with the S&P 500 as of May 11, 2025, per data from CoinMetrics, suggesting that stock market sentiment and risk appetite could influence crypto trends. Institutional money flow into crypto markets remains robust, with Bitcoin ETF inflows reaching 500 million USD for the week ending May 10, 2025, according to a report by CoinShares. This cross-market dynamic highlights the importance of monitoring equity indices alongside crypto-specific metrics, as a downturn in stocks could dampen risk-on sentiment in digital assets. For traders, these correlations emphasize the need for diversified strategies, balancing crypto positions with exposure to traditional markets to mitigate sudden shifts in sentiment.

In summary, the bullish sentiment reported by Greeks.live on May 12, 2025, combined with robust trading volumes, technical indicators, and institutional inflows, points to a favorable environment for crypto traders. However, the potential for volatility and the interplay between stock and crypto markets necessitate cautious optimism. By focusing on key levels like 106,000 USD for Bitcoin and leveraging on-chain data alongside traditional market indicators, traders can position themselves for both upside potential and downside protection in this dynamic landscape.