Bitcoin Holds Above $100,000 Despite 1% Decline, Bullish Sentiment Rises

Bitcoin has shown resilience in maintaining its value above the six-figure mark following its surge above $100,000 in the previous week. However, the cryptocurrency's price action has lacked momentum, as evidenced by its performance last week. This sluggishness and apparent indecision in the market can be attributed to significant selling pressure in the derivatives market. Despite this, recent on-chain data indicates that Bitcoin still has potential for further growth.
According to a recent analysis by blockchain analytics firm, there is a rising bullish sentiment among Bitcoin options traders. The 1-month 25 Delta Skew, an indicator that compares the implied volatility of bullish bets (call options) to bearish bets (put options), has shown a negative value. This suggests that traders are more willing to bet on the price of Bitcoin moving higher than for protection against downside exposure. The 1-month 25 Delta Skew metric recently dropped to around -6.1%, indicating that call options now carry higher implied volatility compared to put options. This trend reflects a risk-on environment where traders and investors are more willing to risk their funds.
Historically, a negative 25 Delta Skew has been a strong bullish sentiment indicator, often preceding further appreciation of the Bitcoin price. The current options data not only supports BTC’s upward movement but could also serve as a positive catalyst for more growth as additional long positions enter the market. As of the latest update, the price of BTC stands at around $102,800, reflecting an over 1% decline in the past 24 hours. This price action, combined with the bullish sentiment in the options market, suggests that Bitcoin may be poised for further upside potential and could potentially reach a new all-time high soon.

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