The leading cryptocurrency, Bitcoin, started the new week around $62,000.
While uncertainty persists regarding how BTC will behave in the face of new developments between the US and Iran, an analysis firm stated that downside fears in BTC options have diminished and that a recovery is contingent upon reaching $62,000.
The crypto options trading platform BIT (formerly Matrixport) indicated in its latest analysis that the perception of downside risk is beginning to ease.
Concerns about the extreme downside risk in the Bitcoin options market have gradually diminished, he said.
The company noted that the current outlook on the options curve suggests Bitcoin may be forming a higher bottom and the market may have passed its most intense selling concerns.
However, the company stressed that maintaining this positive outlook for Bitcoin and holding onto the $62,000 support level is critical for a recovery.
BIT suggests that current market participants are holding relatively small positions, which will limit further selling pressure.
The company also stated that price movements in the options market this week will be decisive for Bitcoin’s short-term direction. This is because a narrowing of the negative options skew could revive Bitcoin’s upward momentum.
On the other hand, the analysis firm also reminded that macroeconomic pressures on the crypto market continue. According to the analysis, geopolitical developments and the rise in US Treasury bond yields remain the most important risk factors to watch for Bitcoin and other risky assets.
BIT concluded by adding that its assessment is purely market analysis and should not be considered investment advice.
*This is not investment advice.
