Insights on Bitcoin’s Potential Future Movement
Bitcoin recently touched the $70,000 milestone before experiencing a drop to $66,000. Despite this, industry experts at Bitfinex anticipate further retracement in the near future. Here are some key insights into Bitcoin’s possible trajectory in the coming days:
Analysis of Bitcoin’s Options Market Trends
- Following President Joe Biden’s exit from the 2024 presidential race, the crypto market saw a surge in implied volatility in BTC options contracts, peaking at 68.6%.
- However, as anticipation built up around speeches by former President Donald Trump and presidential candidate Robert F. Kennedy at the Bitcoin 2024 Nashville conference, implied volatility began to decline.
- Traders were observed de-risking and closing positions ahead of the event, leading to a temporary dip in Bitcoin’s price below $64,000.
Potential Stalling or Pullback in Bitcoin’s Price
- Despite briefly surpassing $69,000 on July 29, Bitcoin faced resistance at the $68,000-$69,000 level and experienced a significant retracement soon after.
- During the conference weekend, there was a spike in realized volatility, contrasting with the downward trend in implied volatility observed by analysts at Bitfinex.
- With the expiry of 61,000 BTC options and a Put Call Ratio of 0.62, totaling $3.1 billion in notional value, the market is adjusting to recent events and catalysts.
Future Outlook and Expected Market Movements
Looking ahead, analysts predict that Bitcoin might undergo further retracement due to the continued decline in implied volatility. The market is likely to adjust as monthly expiries approach, potentially exerting additional downward pressure on volatility levels.
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