2024-07-09 00:00:33 by NewsBTC

So far, Bitcoin has seen significant volatility in the last trading session, hinting at frail investor sentiment. Earlier today, the asset soared to as high as $57,300. However, the asset now appears to have run out of steam after reaching this mark as it trades at $55,966, down by 1.6%. This surge in volatility is a sign that the market has become more fearful as traders watch several key technical levels. However, the latest data suggests a shift in trader patterns as more defensive strategies are sought. Analysts from the ETC Group report have noted a substantial increase in the open interest in Bitcoin options, pointing towards a strategic preference for downside protection. This is illustrated by the spike in implied volatility for short-dated options, indicative of more near-term price action. Insights from the Options Market: A Glimpse into Trader Sentiments The Bitcoin options trading market has given a glimpse of the current market mood. Recent data from Deribit show a put-call ratio—a metric that compares the trading volume of put options versus call options—higher than 1, indicating that the market is still bearish based on what traders are doing. This ratio indicates a higher volume of trades betting on or hedging against a further price drop. The fact that we are seeing such alignment in the market indicates a sizable segment of the market is bracing for the possibility of Bitcoin continuing its descent. ETC Group analysts agree with such a view, noting the peculiar term structure of volatility: higher implied volatilities in short-dated options versus longer-dated ones—a traditional characteristic of excessive bearishness on the market. The analysts particularly noted: Both the spike in put-call volume ratios as well as 1-month 25-delta option skew signalled a significant increase in demand for downside protection. BTC option implied volatilities have also increased slightly during the latest leg down. Implied volatilities of 1-month ATM Bitcoin options are currently at around 50.5% p.a. The term structure of volatility is also inverted now with short-dated options trading at significantly higher implied volatilities than longer-dated options. This tends to be a sign of overextended bearishness in the options market. Navigating Through Market Uncertainty These dynamics are being felt heavily in the market, with many prominent voices commenting on potential pathways for Bitcoin. Long-time trader Peter Brandt hints he expects Bitcoin to form a double top setup, a bearish flag implying price drawdowns as deep as even $44K. Brandt, however, also accepts that the construction might not meet all requirements of a technical pattern and allows for different price consequences. A more positive view comes from Timothy Peterson. He said that as Bitcoin can end July above $50,000, it has a “strong chance” of either hanging onto or even increasing in value into October. According to Peterson, the chances are 60% that Bitcoin could trade quarter in the coming months and a 25% chance that Bitcoin will cross its all-time highs within the next three months. BTC price is moving downwards on the 2-hour chart. Source: BTC/USDT on TradingView.comFeatured image created with DALL-E, Chart from TradingView Samuel Edyme Meet Samuel Edyme, Nickname - HIM-buktu. A web3 content writer, journalist, and aspiring trader, Edyme is as versatile as they come. With a knack for words and a nose for trends, he has penned pieces for numerous industry player, including AMBCrypto, Blockchain.News, and Blockchain Reporter, among others. Edyme’s foray into the crypto universe is nothing short of cinematic. His journey began not with a triumphant investment, but with a scam. Yes, a Ponzi scheme that used crypto as payment roped him in. Rather than retreating, he emerged wiser and more determined, channeling his experience into over three years of insightful market analysis. Before becoming the voice of reason in the crypto space, Edyme was the quintessential crypto degen. He aped into anything that promised a quick buck, anything ape-able, learning the ropes the hard way. These hands-on experience through major market events—like the Terra Luna crash, the wave of bankruptcies in crypto firms, the notorious FTX collapse, and even CZ’s arrest—has honed his keen sense of market dynamics. When he isn’t crafting engaging crypto content, you’ll find Edyme backtesting charts, studying both forex and synthetic indices. His dedication to mastering the art of trading is as relentless as his pursuit of the next big story. Away from his screens, he can be found in the gym, airpods in, working out and listening to his favorite artist, NF. Or maybe he’s catching some Z’s or scrolling through Elon Musk’s very own X platform—(oops, another screen activity, my bad…) Well, being an introvert, Edyme thrives in the digital realm, preferring online interaction over offline encounters—(don’t judge, that’s just how he is built). His determination is quite unwavering to be honest, and he embodies the philosophy of continuous improvement, or “kaizen,” striving to be 1% better every day. His mantras, “God knows best” and “Everything is still on track,” reflect his resilient outlook and how he lives his life. In a nutshell, Samuel Edyme was born efficient, driven by ambition, and perhaps a touch fierce. He’s neither artistic nor unrealistic, and certainly not chauvinistic. Think of him as Bruce Willis in a train wreck—unflappable. Edyme is like trading in your car for a jet—bold. He’s the guy who’d ask his boss for a pay cut just to prove a point—(uhhh…). He is like watching your kid take his first steps. Imagine Bill Gates struggling with rent—okay, maybe that’s a stretch, but you get the idea, yeah. Unbelievable? Yes. Inconceivable? Perhaps. Edyme sees himself as a fairly reasonable guy, albeit a bit stubborn. Normal to you is not to him. He is not the one to take the easy road, and why would he? That’s just not the way he roll. He has these favorite lyrics from NF’s “Clouds” that resonate deeply with him: “What you think's probably unfeasible, I've done already a hundredfold.” PS—Edyme is HIM. HIM-buktu. Him-mulation. Him-Kardashian. Himon and Pumba. He even had his DNA tested, and guess what? He’s 100% Him-alayan. Screw it, he ate the opp. Disclaimer: The information found on NewsBTC is for educational purposes only. It does not represent the opinions of NewsBTC on whether to buy, sell or hold any investments and naturally investing carries risks. You are advised to conduct your own research before making any investment decisions. 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