news 
Bitcoin Options Flip Bullish: Traders Bet On Rebound Despite Price Dip
Data shows the Bitcoin Options 25 Delta Skew has seen a bullish flip, signaling that traders are increasingly positioning for an upside or volatility in the market. This comes as Bitcoin faces some bearish price action.
According to analytics firm Glassnode, the options 25 delta skew metric, which compares the implied volatility of bearish and bullish positions (puts and calls), has recently observed a reversal to positive levels for Bitcoin. This shift is significant, as it indicates that traders are becoming more optimistic about the cryptocurrency’s future performance.
The 25 Delta Skew, a market indicator that tracks changes in the expected volatility between these two types of options contracts with a delta of 25, is an important gauge of sentiment among traders. To refresh your memory, these put-call combinations have their price change by $0.25 for every $1 change in the BTC spot value.
In essence, this metric assesses the expected volatility in the market, and any changes to it can be used as a benchmark for market sentiment. By comparing the implied volatility of bearish (puts) and bullish positions (calls), this indicator provides insights into the perceived risk by traders, which has been reflected in the recent flip.
The data from Glassnode reveals that the Bitcoin Options 25 Delta Skew has made a significant turnaround, as it stands at positive levels across all examined expiration periods. This suggests that traders are becoming increasingly confident about the prospects of an upswing and are betting on a rebound despite the current bearish trend.
It is essential to emphasize that this shift in trader sentiment does not necessarily mean that Bitcoin will go up in value immediately. Cryptocurrency markets, by their nature, can be unpredictable.
Source: bitcoinist.com
