QCP Capital released its new Market Analysis offering recently insight into what might be in store for the price of Bitcoin (BTC) — more importantly, which direction it could move next. These new insights focus on the market for options.
Analysis of Bitcoin options to predict market movement
QCP Capital’s latest report has revealed an interesting pattern within the Bitcoin options markets, which highlights a rise of front-end volatility for BTC. This 5 point increase in volatility over short term indicates traders will be preparing to see larger price swings. next Few Weeks
The growing number of risk-reversals on the topside suggests that traders are expecting prices to rise in a positive manner, and this is affecting market sentiment.
QCP Capital says that the combination of higher implied volatilities and appealing risk reversals creates a favorable environment for an upward price trend. QCP’s analysts noted that:
Bitcoin front-end volatility increased by 5 points this morning, with risk reversals favoring the topside, signaling the market’s anticipation of potential topside volatility.
Bitcoin’s price has recovered a little as investors digest the fundamental analysis. volatility The upward trend continues. Despite the slow recovery, it appears that the asset is still being pulled down by the bears.
BTC was trading as high as $59313 earlier today. However, as of the writing of this article, it has lost most of the gains made today. It is currently at $57766, just a few dollars off its low for the day of $57127.
The continued volatility is a part of a larger backdrop. financial market This is always changing and a particular focus has been placed on the Consumer Price Index. QCP has noted that:
The perceived decrease in supply could lead to a softening of CPI, which would be able to help break this downward spiral. [current] Range, boosted in particular by the imminent launch of ETF spot trading for ETH next week. Digitals offers a great risk/reward on the upside.
BTC holders’ long-term sentiment
The confidence of Bitcoin long-term holders remains intact, despite all these factors. The latest on-chain data from Glassnode, this cycle’s steepest price corrections are not even persuading these investors To sell.
Glassnode stated that, in spite of several market bumps like Bitcoin falling to as little as $53,500 just last week, the long-term owners are determined and their ambitions haven’t changed for months.
The data suggests that only 36% or perhaps even less of the total Bitcoin capital has moved during this week’s sell-off events – substantially lower than past major market capitulations Over 60% of the participants are involved.
These data suggest a solid market behavior, which supports an established underlying structure. This is true even though BTC has been going through one of its most difficult post-halving cycle ever.
Chart created by TradingView, DALLE.
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Source: www.newsbtc.com