Bitcoin Traders Brace for Impact: QCP Capital Signals Incoming Price Drop—Here’s Why
25 Juli 2024 - 6:00AM
NEWSBTC
Recent analysis from QCP Capital indicates a marked shift in
derivatives market sentiment, signaling that options traders are
bracing for further declines in Bitcoin value. Dissecting the
Bearish Sentiment The derivatives market has experienced a notable
shift over the past day, with the implied volatility in Bitcoin
options decreasing. Related Reading: Is The US Emulating Germany?
$4 Million Bitcoin Movement Raises Questions This indicates that
traders are worrying more about the possible downside risks.
According to a note from analysts at QCP Capital, the spread
between call and put options has tightened by three volatility
points. QCP Capital noted: While spot prices remain muted, the
options market is painting a different picture. 26 Jul vols made an
impressive 8-vol rally with RR dipping by 3 vols signalling caution
to the downside. This contraction reflects growing market caution
as traders prepare for possible Bitcoin price declines amid
increasing sell-pressure. Notably, the US government moving Bitcoin
to exchanges like Coinbase and MtGox creditors beginning to receive
their redistributed assets via Kraken, are contributing factors.
These movements have injected substantial Bitcoin into the market,
potentially suppressing prices further. QCP Capital’s analysts
added: With the ETH Spot ETF potentially not impacting prices on
the outset, coupled with potential selling pressure from the US
Government and Mt Gox, prices may remain subdued until momentum
builds up leading to the elections. The Positive Bitcoin Signal
Amid the bearish sentiment from the derivative market shared by QCP
Capital, some other Bitcoin metric suggest quite an opposite
sentiment—Bullish. According to a CryptoQuant author on the
QuickTake platform, there has been a significant increase in
Bitcoin withdrawals from Kraken. This is particularly noteworthy as
it comes at a time when Mt.Gox creditors are receiving their funds
from the Kraken exchange. The analyst noted: This could be a
positive signal, indicating that they are not selling and are
preparing to hold their coins, moving them from the exchange to
cold wallets. Although the volume is not high, over 5K $BTC (USD
329.192.018$) have been withdrawn in the last 24 hours. Meanwhile,
regardless of the mixed signals from both QCP Capital and
the CryptoQuant analyst, BTC itself is still maintaining a crucial
mark price above $66,000. Related Reading: Analyst Breaks Down
Bitcoin’s Potential for Surge and Setback, Reveals 5 Key Trends
Although the asset briefly traded at $67,073 earlier today, Bitcoin
has now retraced slightly, trading for $66,705 at the time of
writing. According to prominent crypto analyst RektCapital, so far,
not only has BTC successfully retested the old all-time high (ATH)
major resistance area, but the asset now has a chance to “form a
new Higher High for the first time in months.” #BTC Not only has
the retest been successful… But Bitcoin also has a chance to form a
new Higher High for the first time in months$BTC #Crypto #Bitcoin
https://t.co/2sMk2eekFN pic.twitter.com/wHubSs1a9Q — Rekt Capital
(@rektcapital) July 22, 2024 Featured image created with DALL-E,
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