Bitcoin's Upside May Be Capped
Some analysts believe that Bitcoin's upside is capped due to options data and market maker activity suppressing rallies, despite a long-term bullish outlook.
Following a tumultuous event last week, which triggered the worst cascading 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 a significant uptick in put options expiring on October 31, and implied volatility has repriced downward to the low 40s in the short term and around 45% for longer horizons, says Hendrik Ghys, founder of Thalex Global.
The current market situation has led to calmer waters for Bitcoin, but the long-term outlook remains bullish.
Author's summary: Bitcoin's upside may be capped due to market activity.