The leading cryptocurrency Bitcoin (BTC) rose above $93,000 in the bullish wave that started after Trump's presidential victory, but fell after FED Chairman Jerome Powell said there should be no rush to lower interest rates.
While the BTC price fell to $87,600 levels in this bearish wave, analysts said that the data pointed to a potential pullback.
According to Coindesk, BloFin Head of Research and Options Griffin Ardern said that Bitcoin has broken past $90,000 but the options market is signaling a potential pullback.
Ardern said options market data from Deribit showed investors were preparing for potential price declines.
At this point, the analyst noted that the implied probability distribution has shifted to the left, indicating that lower price levels are expected in the future.
“As is typical of Bitcoin options, the implied probability distribution of different expiration dates has shown a significant left shift. This was also seen in MSTR and COIN stocks.
Based on this data, traders think that BTC and altcoin prices are still high and that further pullbacks may be on the way.”
Despite the bearish outlook, most investors remain bullish, positioning for more gains and a possible move above $100,000, the analyst added.
*This is not investment advice.