Bitcoin intelligent
And Ether merchants are underpinning their defenses as the widest market continues to anticipate the price action reached during the summer.
That is the message of a strategy based on options called Risk Reversion of 25-Delta, which implies the simultaneous purchase of a sales option and the sale of a call, or vice versa.
At the time of writing, risk reversions based on bitcoins and ether options that quote abandonment indicated that investors were positioning for the downward volatility during the summer.
The risk reversions of 25 BTC of BTC for June, July and the tenors of August were negative, indicating a preference for the sales options, which offer downward protection, on calls or bullish bets, according to the data of the data source. In the case of ETH, the puts were more expensive for the expiration of the end of July.
Merchants generally buy sales options to cover their long positions in futures and futures markets, protecting themselves from possible price decreases.
“Risk reversions both in BTC and ETH continue to show a preference for the protection of disadvantage in the tenors of June and September. This suggests that long holders are actively charging exposure to points and preparation for possible reduced ones,” said QCP Capital based in Singapore in a market note.
Nervousness is evident by the paradigm of the free sale liquidity platform, where the five main BTC trades for the week include a propagation of puts and a reversal of bearish risk. Meanwhile, in the case of ETH, a long position in the $ 2,450 positions crossed the tape along with a short exchange (volatility).
Bitcoin, the leading cryptocurrency for market value, has spent more than 40 days quoting back and forth above $ 100,000, according to Coindesk data. According to analysts, the profits of the long -term holders and the sale of miners have counteracted the strong absorption of the ETF spot, leaving prices without direction.
“Bitcoin has recently tracked on the side, suggesting that its current price can be too high for many retail investors. The open interest in BTC options has increased, with a positive and ascending elevator of 25 Delta.
On Friday, BTC closed (UTC) below the single mobile average of 50 days (SMA) to negotiate below the key support for the first time since mid -April. The breakdown can lead to a sale more driven by the graphics, which could result in a fall below $ 100,000.
However, some observers await a demonstration to new records. According to the Cas Abbé market observer, BTC’s equilibrium volume continues to indicate a strong purchase pressure, suggesting that prices could increase to $ 130,000- $ 135,000 at the end of the third quarter.
