While Bitcoin has been exhibiting sudden rise and fall movements in recent days, options traders expect downward pressure to continue amid its recent correction.
According to The Block, ETC Group analysts, citing Deribit data, said that there was an increase in the selling positions of option investors.
According to analysts, this indicates that option traders are looking for protection against further declines following the recent correction in BTC.
Analysts stated that the buy-sell ratio for Bitcoin option open positions rose above 1 before the weekly expiration date on July 12, indicating a bearish market.
“The put-call ratio for bitcoin options open interest rose above one before weekly expiration on Friday, which is seen as a bearish signal.
A ratio above one means that significantly more put options are traded than call options.
This suggests that investors are looking for greater protection against further price declines and are hedging against the decline. “
Analysts said that according to Deribit data, the largest option open positions expiring on Friday occurred at $ 58,000, while a significant amount of put options were also concentrated at the maturity prices of $ 52,000 and $ 48,000.
As a result, option investors’ focus on put options shows that they expect further declines in BTC and the market.
Bitcoin continues to trade at $57,189 at the time of writing.
*This is not investment advice.
