Bitcoin has experienced a significant drop in the past 24 hours, falling below $58,000, while Ethereum (ETH) is still preparing for an attack. Analysts at QCP Capital have reported that despite spot sales of BTC, option investors are still bullish for ETH. The options market has remained optimistic with strong interest in ETH calls for both September and December expirations. The recent decline in BTC and ETH has caused many investors to take short positions, with liquidation clusters intensely inclined upwards. However, analysts predict that a directional movement may occur due to the SEC’s S-1 approval, which could cause a sharp increase in ETH. While BTC miners are showing signs of capitulating, which has historically been associated with a bottom in prices, the options market remains optimistic. The likelihood of upward movement is possible if liquidation clusters shift significantly upwards, leading to potential short squeezes.
