Is It Time for Bitcoin and Ethereum to Soar? What Does Options Data Suggest for BTC and ETH?
As Bitcoin experiences continued fluctuations, attention is drawn to the weekly options for Bitcoin and Ethereum set to expire today.
Reports from the Singapore-based crypto options data platform Greeks.live indicate that 20,000 BTC and 200,000 ETH options will reach expiration on June 14.
With a Put/Call Ratio of 0.49 for BTC options, the maximum loss point is set at $68,500 with a notional value of $1.35 billion. On the other hand, ETH options show a Put/Call Ratio of 0.36, a maximum loss point of $3,600, and a notional value of $710 million.
Despite positive economic data, Bitcoin and altcoins have not performed well this week. Mainstream cryptocurrencies like Bitcoin and Ethereum have seen a decline, with altcoins experiencing even steeper drops.
Greeks commented on the situation, highlighting the upcoming news regarding ETH ETF approval by the end of the month, advising traders to consider purchasing options for the following month.
The maximum loss points for Bitcoin and Ethereum currently surpass their price levels, indicating a potential bullish sentiment among options traders. Additionally, the Put/Call Ratios suggest a bullish trend for both BTC and ETH.
The put/call ratio is a key indicator calculated by dividing the number of put options by the number of call options. A ratio below 1 signifies more purchases than puts, signaling an upward trend. Conversely, a ratio above 1 indicates a bearish trend. In this case, both Bitcoin and Ethereum show ratios below 1, suggesting an upward trajectory.
It is important to note that investment decisions should not be based solely on one data point or report. The market dynamics can change rapidly, and it is crucial to consider multiple factors before making any investments.
In conclusion, the options data for Bitcoin and Ethereum show promising signs of a potential uptrend. Investors are advised to stay informed and cautious when navigating the volatile crypto market.