As a seasoned financial analyst with extensive experience in crypto markets, I have closely monitored the recent developments in Bitcoin (BTC) and Ethereum (ETH). Based on the available data from trusted sources like Geeks Live and insights from industry experts, I believe that Bitcoin’s price recovery above $70,000 is a strong possibility.
Bitcoin, the most significant cryptocurrency globally, experienced a robust increase of more than 5% in the last 24 hours, surpassing the $67,000 mark once again before the upcoming expiry on Friday, July 30. Presently, around 61,000 Bitcoin options are approaching their maturity date with a total worth of approximately $4.1 billion.
According to Geeks Live’s statistics, the put-call ratio stands at 0.62, with a significant loss point for option holders at $63,500. This significant loss point represents the price level that inflicts the most financial damage on option buyers. In contrast, a put-call ratio below 1 indicates more call options (buy) than put options (sell) being traded. The current week’s put-call ratio implies that traders are preferring to buy options over selling them, suggesting a bullish outlook in the market.
The data from Greeks Living reveals a notable increase in implied volatility (IV) for significant terms, with short-term IVs jumping by 10% or more compared to the previous week. Furthermore, today signifies the monthly expiry for July options contracts, leading to larger than anticipated IVs.
Over the weekend as Bitcoin conference news is digested, it’s expected that Implied Volatilities (IVs) will experience additional downward pressure in the coming week based on today’s monthly delivery.
As an analyst, I’d interpret the data as follows: On July 26th, approximately 61,000 Bitcoin options expired with a put-call ratio of 0.62. This indicates that for every two call options (bets on price increases), there were one and a half put options (bets on price decreases). The max pain point, or the price level at which these contracts would result in no profit or loss, was set at $63,500, with a total notional value of about $4.1 billion.
— Greeks.live (@GreeksLive) July 26, 2024
BTC Price Recovery Above $70,000 Possible?
Recently, Bitcoin’s price has been confined to a narrow range. Yesterday, however, Bitcoin recovered from its significant support mark of $65,000. Renowned crypto analyst Rekt Capital posted a chart indicating that the rebound from this support was successful, potentially signaling an uptrend toward the $71,500 price point.
#BTC
The retest was successful
Bitcoin has confirmed $65,000 as support
Price will now continue to occupy the $65000-$71500 region (red)$BTC #Crypto #Bitcoin
— Rekt Capital (@rektcapital) July 26, 2024
The introduction of spot Ethereum ETFs in the US markets recently has significantly influenced the current market conditions. According to Deribit’s analysts, the combination of factors including the Mt. Gox distribution, outflows from ETFs, and a downturn in the Nasdaq composite index are shaping the present market tendencies.
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2024-07-26 15:26