Bitcoin Remains Range-Bound as Trading Options Project Bearish Near-Term Dynamics
Login

Bitcoin Remains Range-Bound as Trading Options Project Bearish Near-Term Dynamics

Estimated Reading Time: 3 minutes
Article Rating:
Based on 1 vote
Login to rate this article.

Azeez Mustapha

Updated:


Bitcoin (BTC) continues to battle with an aggressive bearish sentiment, as the benchmark cryptocurrency refreshed its $29,000 low in the Asian session yesterday.

On-chain analytics provider Glassnode recently published a report that shows that BTC has traded lower for eight consecutive weeks so far, labeling it the longest “continuous string of red weekly candles in [BTC] history.”

The on-chain analytics platform revealed that during the recent market sell-off, the Bitcoin options implied volatility recorded a massive surge. Glassnode explained:

“Short-dated at-the-money options saw IV more than double, from 50% to 110%, whilst 6-month dated option IV jumped to 75%. This is a break higher from what has been a long period of very low implied IV levels.”

Amid a raging bearish sentiment, the Bitcoin put options are said to retain solid preference into the end of Q2 2022. Over the last two weeks, the BTC put/call option ratio for open interest surged by 20%, from 50% to 70%. Glassnode suggests that this could be an indication that investors are getting ready to hedge further downside risks.

By the end of Q2, the market will see solid out options with strike prices of $25,000, $20,000, and $15,000. However, the longer-term options (end of 2022) paint a significantly bullish projection for BTC. Glassnode revealed:

“There is a clear preference for call options with a concentration around strike prices of $70k to $100k. Furthermore, the dominant put option strike prices are at $25k and $30k, which are at higher price levels than the mid-year.”

Key Bitcoin Levels to Watch — May 24

Bitcoin has again confirmed its range-bound channel between $30,600 and $28,700 after a sharp rejection from the former yesterday. BTC suffered a 5.8% dump after tapping the $30,626 channel top yesterday.

BTCUSD – 4-Hour Chart on Gemini. Source: TradingView.

This would be the third-consecutive rejection from that top, forming a triple top for BTC. That said, we could witness a bearish continuation to the $28,700 base over the coming hours amid a depressed trading volume. A fall to this mark could finally propel BTC into the $31,000 pivot zone and higher over the coming days.

However, a breach of the stated bottom could be fatal for the flagship cryptocurrency, as it could send it spiraling towards 2020 lows.

Meanwhile, my resistance levels are at $30,000, $30,600, and $31,000, and my key support levels are at $29,000, $28,700, and $28,000.

Total Market Capitalization: $1.25 trillion

Bitcoin Market Capitalization: $555.8 billion

Bitcoin Dominance: 44.3%

Market Rank: #1

 

You can purchase Lucky Block here. Buy LBlock

  • Broker
  • Benefits
  • Min Deposit
  • Score
  • Visit Broker
  • Award-winning Cryptocurrency trading platform
  • $100 minimum deposit,
  • FCA & Cysec regulated
$100 Min Deposit
9.8
  • 20% welcome bonus of upto $10,000
  • Minimum deposit $100
  • Verify your account before the bonus is credited
$100 Min Deposit
9
  • Over 100 different financial products
  • Invest from as little as $10
  • Same-day withdrawal is possible
$250 Min Deposit
9.8
  • The Lowest Trading Costs
  • 50% Welcome Bonus
  • Award-winning 24 Hour Support
$50 Min Deposit
9
  • Fund Moneta Markets account with a minimum of $250
  • Opt in using the form to claim your 50% deposit bonus
$250 Min Deposit
9

Learn to Trade

Never Miss A Trade Again

step 1
Signal Notification

Real-time signal notifications whenever a signal is opened, closes or Updated

step 2
Get Alerts

Immediate alerts to your email and mobile phone.

step 3
Entry Price Levels

Entry price level for every signal Just choose one of our Top Brokers in the list above to get all this free.

Share with other traders!

telegram
Telegram
forex
Forex
crypto
Crypto
algo
Algo
news
News