Bitcoin's Upside May Be Capped
Bitcoin's upside may be capped due to options data and market maker activity suppressing rallies, despite a long-term bullish outlook.
Following last week's tumultuous event, which triggered the worst cascading set of liquidations in crypto's 16-year history, Bitcoin has slowed its momentum, trading at around $113,500, down 1.5% over the past 24 hours, according to CoinGecko data.
Heightened bearish activity has led to an uptick in put options expiring on October 31,
according to Hendrik Ghys, founder of Thalex Global, with implied volatility, a key metric reflecting market expectations of future price swings, repriced downward to the low 40s in the short term and around 45% for longer horizons.
Author's summary: Bitcoin's upside may be limited.