Analysts Forecast: Ethereum Gears Up Amid Bitcoin’s Continued Decline
Bitcoin has deeply disappointed investors, plunging below $58,000 over the last 24 hours. Despite this downturn, QCP Capital analysts highlight ongoing bullish sentiment among options investors, particularly towards Ethereum.
Despite substantial spot selling, the options market remains optimistic, evidenced by robust interest in Ethereum call options expiring in September and December. Analysts note the breach of psychological support levels for both BTC and ETH, prompting many investors to take short positions, thus creating clusters of liquidations that could spur directional movements.
Recent discussions suggest that approval of the SEC’s S-1 form could trigger a significant ETH rally. “Intense selling pressure has once again pushed Bitcoin below the crucial $60,000 support, hitting a low of $57,875,” analysts observed. They pointed out signs of capitulation among BTC miners, historically signaling price bottoms, with similar hashrate drops seen in 2022 when BTC traded below $17,000.
Despite the crypto sell-off, optimism prevails in the options market. Key potential catalysts for reversing the current downtrend include:
1. Significant shifts in BTC and ETH liquidation clusters, potentially leading to short squeezes and upward price movements.
2. The anticipated approval of the S-1 form, which could trigger a sharp increase in ETH value.
*This article does not constitute investment advice.
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