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Bitcoin Golden Cross Nears: What’s Next for BTC Price?
As the world waits with bated breath to see if Bitcoin will continue its upward trajectory or succumb to the inevitable correction, one thing is clear – the market is not as optimistic about the future as it once was. According to recent data from Glassnode, futures open interest has plummeted by a whopping 35% since Bitcoin’s all-time high, indicating reduced speculation and hedging activity.
This sudden drop in on-chain liquidity suggests that the market is adopting a risk-off approach, with investors shying away from speculative positions and instead opting for defensive measures. This contraction in on-chain liquidity further solidifies the notion that the euphoria surrounding Bitcoin has waned significantly.
Furthermore, Bitcoin options markets reveal an even more striking trend – traders are increasingly demanding downside protection. The Volatility Smile metric reveals that puts are trading at a higher premium than calls, which is a clear indication of risk-averse positioning as investors hedge against potential losses.
The 25 Delta Skew also corroborates this narrative, highlighting the sustained demand for hedging activities and the increasing cost of downside protection in BTC options. These findings collectively suggest an air of uncertainty surrounding Bitcoin’s price action, which may lead to further volatility in the short term.
As we near the possibility of a Golden Cross – an occurrence where the 50-day moving average surpasses the 200-day moving average – it becomes increasingly important to assess what this event would mean for BTC’s trajectory.
Source: https://u.today/bitcoin-golden-cross-nears-whats-next-for-btc-price
