While Bitcoin continues to upset its investors, it has experienced sharp declines in the last 24 hours and fell below $ 58,000.
Evaluating this decline and expectation in Bitcoin, QCP Capital analysts said that despite spot BTC sales, option investors are still bullish for Ethereum.
Despite heavy selling in the spot, the options market is still bullish as we continue to see intense interest in calls for Ethereum's September and December expirations.
Analysts stated that after the psychological support levels in BTC and ETH were broken, many investors took short positions and the liquidation clusters were intensely inclined upwards. He predicts that a directional movement may occur.
Analysts recently stated that the SEC's S-1 approval could cause a sharp jump in ETH.
“There is another day of intense selling pressure that caused Bitcoin to break below the $60,000 support level and hit a low of $57,875.
BTC miners are showing signs of capitulating. Historically this has been associated with a bottom in prices, with the last comparable hashrate drop in 2022 when BTC traded below $17,000.
Despite the selloff in crypto, the options market is still optimistic.
What events could cause prices to break this downward trend?
1- Liquidation clusters in BTC and ETH have shifted significantly upwards, leading to potential short squeezes. This reveals the possibility of an upward movement.
2- While S-1 Form approvals are awaited, a possible approval could cause a sharp jump in ETH.”
*This is not investment advice.
