Bitcoin: Why the market is hopeful of a BTC move to the north
- Bitcoin began to see green as skew fell. Bearish sentiment declined massively.
- The price of Bitcoin remained steady but volume decreased over the last few days.
With SBF going to jail and BTC beginning to see green, the hope in the crypto space soared. Due to the optimism in the sector, many who held a skeptical stance began to back out.
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Are the bears skewed?
The BTC skew, which measures the balance between options to sell (puts) and options to buy (calls) for Bitcoin, reached its lowest point in 2023.
When the skew gets this low, history suggests that Bitcoin’s price might rebound, but past instances happened in uncertain markets. Hence, investors believe that it’s a cautious sign.
It’s official – BTC skew (puts over calls) has recently hit its lowest value for 2023. Mean-reversion tendencies often follow such lows, which makes me somewhat skeptical. However, it’s worth noting previous occurrences were in a choppy market. Hoping for a continued decline in… pic.twitter.com/2vj2dAm82g
— Samneet Chepal (@samchepal) November 3, 2023
As indicated by market analyst Marco Johanning, Bitcoin recently reached a new annual peak at $35,984.99 on the Binance exchange.
It’s worth noting that while this price had previously been observed in the futures market, the highest price recorded in the spot market was $35,280.
This development has expanded Bitcoin’s trading range to the upside, and it’s currently situated at the upper end of its price range for the past ten days.
Analysts chime in
According to Marco, this could represent a minor deviation, possibly signaling lower prices in the near future (marked in red).
Deviations within trading ranges often result in a full movement across the range, creating opportunities for liquidations, particularly when the majority of traders hold long positions.
Conversely, the increasing prevalence of short positions may exert upward pressure on the price. Major investors, often referred to as ‘whales,’ were currently strengthening their long positions, suggesting the potential for upward movement.
Read Bitcoin’s Price Prediction 2023-2024
It’s important to note that stocks have displayed notable strength recently. Despite Bitcoin’s currently low correlation with stocks, this factor could have a positive impact on Bitcoin’s performance.
Gm friends and happy Thursday! ☕️
Updated Hyblock Heatmaps and Liquidation Level for BTC, ETH, LINK, SOL & DOT
Bitcoin has reached a new yearly high: $35,984.99 (Binance)
Please note: in futures, we had this price already, but in the spot market, the old high was $35,280.… pic.twitter.com/bmHCWp9I7I
— Marco Johanning (@themarcojo) November 2, 2023
At press time, BTC was trading at $34,237.54 and slightly fell over the last few days. The volume at which it was trading also declined during this period.
Source: Santiment
