Bitcoin[1] bulls seemed to rejoice as the top asset registered a new ATH of $69k on 10 November. However, the bullish sentiment didn’t last long. And, bears yet again were back in control, with the crypto falling under $60k.
As the cryptocurrency fell by 10%, bulls seemed most affected. Especially since most of the call (buy) options for 19 November had been placed at BTC’s $66k price level or higher. While that price level wasn’t too much to achieve a while back, recent choppy action makes it all the more difficult.
What’s brewing?
Following the aforementioned price action, the spot markets have been rather mellow, riding on a wave of borderline bearish sentiment. Now, even though year-end price expectations are still looking intact, many in the market are curious about this cycle’s top[2].
Looking at the consolidating market, the $1.1 billion weekly Options expiry set for 19 November could direct BTC’s price. While bulls would want BTC’s price to be higher, bears might act to keep the price under $60k.
Notably, $630 million call options dominate the weekly expiry by over 33%, compared to the $470 million puts. However, with the call-to-put ratio flashing a reading of 1.35 at press time, it is more likely that more bearish bets will take over.
Based on the Futures Market structure, the funding rate, and Open Interest, momentum trends seem to be forming a perfect setting for a ‘Short-Squeeze’ scenario, according to data from CryptoQuant. Nonetheless, the price level that would act as support remains to be seen.
CME derivatives still inactive?
Following the Bitcoin Futures ETF, dynamics on the CME market saw a sort of shift. This created more demand for Bitcoin Futures. As a consequence, the premium also rose. And, hedge funds
