The entire crypto industry is perfect under the phrase of “expect the unexpected” as all the cryptocurrencies are unpredictable. The nature of crypto-assets is volatile and the rate of volatility for the last 3 months has been modest compared to recent peaks.
Significantly, the statistics of the past year hold five instances of 20% daily gains and five intraday 18% fall. The recent drop has confused crypto investors with no sign for prediction. After the local top to $67K, whether it is multi-billion institutional investors or ordinary investors, they are enticed by the recent 19% drop.
The lack of a huge liquidation action despite the strong price fall is the first indication that the 19 percent decline to $56,000 indicated a local bottom. If there was considerable buyer leverage at play, which is an indication of an unsustainable market, open interest would have changed abruptly, similar to what happened on Sept 7.
Will Bitcoin Rise Again?
The significant fact that investors should understand is analyzing the 25% delta skew. By comparing similar call (buy) and put (sell) options side by side, this indicator provides a trustworthy picture into the “fear and greed” attitude. When the pricing for neutral-to-bearish put options is larger than the pricing for similar-risk call options, this indicator becomes positive. This is commonly referred to as a “fear” scenario. Bullishness or “greed” is shown by the opposite tendency.
Moreover, the graph of Bitcoin lies between negative 7 and positive 7 which is neutral, and this is nothing to worry about as it is usual. If professional traders have noticed larger dangers and market crashes then this graph would have surged above 10%.
At the time of writing, BTC was trading at $59,542 with a gain of 2.8% for the past 24-hours. Besides, this local support level is just temporary and this price fall of BTC is assumed to be a pullback. It might again surge up gradually presenting a bullish rally to the users.
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