"Today News Updates "
Will Bitcoin Bounce Back? Traders Place Their Bets on a Rocky Q4, Data Shows. 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%.<\/p>\n
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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.<\/p>\n
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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.<\/p>\n
Insights from the Options Market: A Glimpse into Trader Sentiments<\/p>\n
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.<\/p>\n
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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.<\/p>\n
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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.<\/p>\n
The analysts particularly noted:<\/p>\n
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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.<\/p>\n
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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.<\/p>\n
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Navigating Through Market Uncertainty<\/p>\n
These dynamics are being felt heavily in the market, with many prominent voices commenting on potential pathways for Bitcoin.<\/p>\n
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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.<\/p>\n
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.<\/p>"
