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Why is Bitcoin struggling to find a bottom?
Traders are stopping and waiting for $ 17 billion Bitcoin options volatility to settle, or shares to overheat, leaving a lot of capital on the sidelines.
What is the short -term prospects for BTC?
Bitcoin was able to see further retracement and increased volatility, especially with macro pressure and the $ 17 billion options threaten.
Investor appetite shifts and bitcoin [BTC] Feels the pressure.
The American stock market tears on the macro side. All three most important indices [$DJI, $NASDAQ, and $SPX] have touched fresh all-time highlights and signal money that legacy markets are chasing after FOMC.
In the meantime, the American 10-year-old Treasury return slid mid-September to a quarter of 4.01% of 4.01%, which caused the pursuit safer bonds of that money to cool down, while risk-to-betting such as Bitcoin cooled down. In short, the bid wall of BTC weakened.
Source: Handelsconomy
Despite the 25 BPS interest rate reduction, the conviction of investors in BTC has not returned.
In the meantime, Stablecoin supply was exploded in September from $ 204 billion to $ 308 billion in January. That is more than $ 100 billion in dry powder that is still on the sidelines, ready to run in BTC as soon as risk-on flows.
The question: when will the rotation affect? Wait the market for a cleaner entry, a deeper rate reduction, overheated shares or the $ 17 billion BTC options to erase before FOMO withdraws?
Bitcoin -eyes maximum pain before massive options
The Option Is seeing heavy activities prior to the upcoming expiry date.
There is a total open interest (OI) of 152,549 contracts, which reflects a strong participation of traders. Of these, 86,997 Call options are placed, while 65,552 are placed, which produce a PUT/Call ratio of 0.75, pointing to a mild bullish bias.
The fictional value of all outstanding contracts is around $ 17.04 billion, which shows considerable capital at stake. In particular, the maximum pain price has been set at $ 110,000, where Bitcoin can be drawn as the falsifying approaches.
Source: Deribit
In short, all these factors explain why Bitcoin has not yet been included.
Traders remain offsideWaiting for a cleaner input, options FUD to shake out, or shares to overheat, so that considerably dry powder is kept from the market. Until one of these triggers hits, BTC’s Oktoberrerhaling looks difficult.
Consequently, a deeper Retracement is firmly on the table, where the volatility is probably raised as the market consumes this macro and options-driven pressure.