Bitcoin Options Data Suggests Investors are Anticipating Another Leg Down
Similarly, an analysis by the team at Bloomberg concluded that Bitcoin options data suggests that investors are anticipating another leg down for BTC. According to their research, the put-to-call ratio of BTC has hit a one-year high of 0.72, meaning Bitcoin traders are loading up on hedges in the event of another dip to lower levels.
Josh Olszewicz, head of research at Valkyrie Investments, further explained that the global financial macro environment was another reason investors were bearish on Bitcoin. He said:
[It] signals cynicism in the markets with rising bearish sentiment…Given the macro situation globally, and the near uniform risk-off trade currently dominating most asset classes, traders have followed suit with their Bitcoin strategies.
Bitcoin’s Weekly Chart Confirms the Possibility of a Drop to the 200-week MA at Around $22k
Further consulting the weekly Bitcoin chart below, it can be deduced that BTC is in a clear downtrend and looks set to retest the 200-week moving average (green) in the days ahead. The latter moving average also coincides with one of Magic’s targets of $22k.
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