Bitfinex Analyst Derivatives Market Data Suggests Bitcoin May Have Reached a Phase Bottom

Bitfinex Analyst Derivatives Market Data Suggests Bitcoin May Have Reached a Phase Bottom

Bitfinex Analyst Derivatives Market Data Suggests Bitcoin May Have Reached a Phase Bottom

Last week, due to market panic over the German government and Mt. Gox creditors’ sell-off, the price of Bitcoin experienced heavy downward pressure, falling below the 120-day price range and briefly dropping to $53,219.

However, according to analysts at Bitfinex, derivative market indicators suggest that the price of Bitcoin may have started to stabilize and that the asset may have reached a local low. According to The Block, the Bitfinex analysts stated to the media that the implied volatility and historical volatility gap has narrowed by nearly 90%, indicating that traders expect the Bitcoin price to remain within a range and stabilize. On the other hand, while open interest in options contracts shows a lack of confidence in both bullish and bearish directions, the selling pressure from short-term holders may be nearing its end.

The Bitfinex analysts stated, “Although we see long-term Bitcoin holders continue to realize significant profits in their spot positions, the selling pressure from short-term holders may be nearing its end. We note that the short-term holder’s spent output profit ratio (SOPR) is 0.97, indicating that this group is currently selling at a loss. Historically, when this situation occurs and the selling pressure eases, prices usually rebound.”

About GT Radar

GT Radar focuses on creating a long-term, stable growth quantitative investment portfolio and has over 10 years of experience in stock and cryptocurrency quantitative trading. The trading system integrates over 150 strategies, aiming to provide high adaptability and flexibility, ensuring profits are obtained from the market in the most robust manner.

Join the GT Radar discussion group.

Weekly Market Analysis Report.