- Bitcoin started to turn green as the skew dropped. Bearish sentiment plummeted.
- Bitcoin’s price remained stable, but volume declined in recent days.
With SBF going to jail and BTC starting to turn green, hopes in the crypto space soared. Due to the optimism in the industry, many who took a skeptical stance began to withdraw.
Is your portfolio green? Check out the BTC profit calculator
Are the bears crooked?
The BTC skew, which measures the balance between options to sell (puts) and options to buy (calls) for Bitcoin, reached its lowest point in 2023.
When the skew gets this low, history suggests that Bitcoin’s price could recover, but previous examples have occurred in uncertain markets. Therefore, investors believe this is a cautious sign.
It’s official: the BTC skew (puts over calls) recently hit its lowest value for 2023. Mean-reversion trends often follow such lows, which makes me somewhat skeptical. However, it is worth noting that previous events occurred in a choppy market. Hoping for a further decline in… pic.twitter.com/2vj2dAm82g
— Samneet Chepal (@samchepal) November 3, 2023
As market analyst Marco Johanning points out, Bitcoin recently reached a new annual high of $35,984.99 on the Binance exchange.
It is worth noting that while this price was previously observed in the futures market, the highest price in the spot market was $35,280.
This development has extended Bitcoin’s trading range upwards and it is currently at the top of its price range for the past ten days.
Analysts report
According to Marco, this could be a small deviation, possibly indicating lower prices in the near future (marked in red).
Deviations within trading ranges often result in a full move within the range, creating opportunities for liquidations, especially when the majority of traders hold long positions.
Conversely, the increasing prevalence of short positions can put upward pressure on the price. Large investors, often referred to as whales, were currently strengthening their long positions, indicating that there is potential for upside.
Read the Bitcoin price forecast for 2023-2024
It’s important to note that stocks have shown remarkable strength lately. Despite Bitcoin’s currently low correlation with stocks, this factor could positively impact Bitcoin’s performance.
Gm friends and happy Thursday! ☕️
Updated Hyblock Heatmaps and Liquidation Level for BTC, ETH, LINK, SOL & DOT
Bitcoin has hit a new yearly high: $35,984.99 (Binance)
Note: in futures we already had this price, but in the spot market the old high was $35,280.… pic.twitter.com/bmHCWp9I7I
— Marco Johanning (@themarcojo) November 2, 2023
At the time of writing, BTC was trading at $34,237.54 and has fallen slightly in recent days. The volume of trading also fell during this period.
Source: Santiment