Extraordinary Bitcoin Options Data Indicates Bearish Market Outlook
Bitcoin options traders are anticipating further downward pressure on the cryptocurrency as recent data reveals an increase in selling positions. ETC Group analysts, referring to Deribit data, have noted a rise in the bid-ask ratio for Bitcoin option open positions, signaling a bearish market sentiment.
This surge in selling positions suggests that option traders are seeking protection against potential further declines in BTC following its recent correction. The buy-sell ratio for Bitcoin option open positions exceeded 1 ahead of the weekly expiration date on July 12, indicating a bearish market outlook.
The put-call ratio for Bitcoin options open interest surpassed one before the weekly expiration, which is typically viewed as a bearish signal. When the ratio exceeds one, it means that there is a significantly higher trading volume for put options compared to call options. This indicates that investors are actively seeking greater protection against potential price declines and hedging against further market downturns.
Deribit data reveals that the largest option open positions set to expire on Friday were concentrated around $58,000. Additionally, a substantial number of put options were also focused on maturity prices of $52,000 and $48,000. This concentration of put options suggests that option investors are anticipating further declines in BTC and the overall market.
As of now, Bitcoin is trading at $57,189. Please note that this article does not provide investment advice.
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