bullish

Hamster Kombat

Bitcoin

A key Bitcoin volatility indicator reached its highest level in 20 months after Bitcoin fell below $50,000, and futures traders now expect Bitcoin’s price might decline further.
Meanwhile, pseudonymous crypto trader Yoddha has <a href="https://x.com/CryptoYoddha/status/1820885622460121148" target="_blank" rel="noopener nofollow">declared</a> it could be “the best buying opportunity of 2024.”
The Bitcoin Volmex Implied Volatility <a href="https://www.tradingview.com/symbols/BVIV/" target="_blank" rel="noopener nofollow">Index</a> tapped 97.14 on Aug. 5, the same day Bitcoin (<a href="https://cointelegraph.com/bitcoin-price">BTC</a>)&nbsp;briefly dipped to $49,813, <a href="https://coinmarketcap.com/currencies/bitcoin/" target="_blank" rel="noopener nofollow">according</a> to CoinMarketCap data.
It’s the highest level since November 2022, when&nbsp;<a href="https://cointelegraph.com/news/ftx-collapse-the-crypto-industry-s-lehman-brothers-moment#:~:text=Eric%20Chen,%20CEO%20and%20co,liabilities%20far%20exceeded%20their%20assets.">cryptocurrency exchange FTX collapsed</a>.
<figure data-ct-non-breakable="true">
 <img src="https://s3.cointelegraph.com/uploads/2024-08/766a1ad8-a0c1-42ec-bfaa-cf394eddbcc1.png" alt="Bitcoin volatility hits 20-month high, traders hedge against further slump" title="">
 <figcaption style="text-align: center;">
 Bitcoin Volmex Implied Volatility Index reached a high of 97.14 on Aug. 5. Source: Trading View
 </figcaption>
</figure>
<h3 data-ct-non-breakable="true" id="24-hour-put-to-call-volume-ratio-signals-bearish-sentiment">24-hour put-to-call volume ratio signals bearish sentiment</h3>
Bitcoin has recovered since to trade at $56,676 at the time of publication, yet futures traders are still speculating there may be further downside ahead.
“Traders are aggressively buying puts and put spreads on both BTC and ETH to protect their positions from further downside,” Tyr Capital chief investment officer Ed Hindi told Cointelegraph.
The put-to-call volume ratio measures the demand for put (sell) versus call (buy) options. Currently, it stands at 46.94% calls and 53.06% puts over the past 24 hours, resulting in a put-to-call ratio of 1.13, <a href="https://www.coinglass.com/options" target="_blank" rel="noopener nofollow">according</a> to CoinGlass <a href="http://data/" target="_blank" rel="noopener nofollow"></a>data.
“Put skew is extremely well bid. This may be a sign that the market is overextended,” Hindi added. 
<figure data-ct-non-breakable="true">
 <img src="https://s3.cointelegraph.com/uploads/2024-08/e59c37eb-824a-4fd3-91c1-859d24610682.png" alt="Bitcoin volatility hits 20-month high, traders hedge against further slump" title="">
 <figcaption style="text-align: center;">
 The put-to-call ratio over the past 24 hours is 1.13. Source: CoinGlass
 </figcaption>
</figure>
Hindi believes there may be further downside but doubts it will “breach” $45,000.
Related: <a href="https://cointelegraph.com/news/bitcoin-bull-bear-market-cycle-signals-potential-bear-market-analyst">Bitcoin bull-bear market cycle signals potential bear market — Analyst</a>
“Whether we trade down there will depend on how far away we are from the end of the JPY carry trade unwind. We believe we are getting close to the end,” he claimed.
But another metric, Bitcoin options volume has dropped by 39.73% over 24 hours on Aug. 6, signaling that future traders are unsure of the direction of Bitcoin’s price.
<h2 data-ct-non-breakable="true" id="some-traders-are-bullish">Some traders are bullish</h2>
However, not all traders are anticipating an extended downturn. Others are anticipating sideways price action and even a near-term recovery.
“Aggressive sell off would assume price to stall for a bit and give us a range,” pseudonymous crypto trader RektProof wrote in an Aug. 6 X <a href="https://x.com/RektProof/status/1820827453033509201" target="_blank" rel="noopener nofollow">post</a>.
“Expect a HUGE reversal soon,” Bitgrow Lab founder Vivek Sen <a href="https://x.com/Vivek4real_/status/1820579567603429611" target="_blank" rel="noopener nofollow">added</a>.
Magazine: <a href="https://cointelegraph.com/magazine/clicker-games-airdrop-speculation-web3-games-hamster-kombat-review-cointelegraph-magazine/">Clicker games to fade post-airdrop, Is Hamster Kombat any good? Web3 Gamer</a>
This article does not contain investment advice or recommendations. Every investment and trading move involves risk, and readers should conduct their own research when making a decision.

Bitcoin volatility hits 20-month high, traders hedge against further slump

Table of Contents

Cointelegraph

Other articles published on Aug 7, 2024

Blockchain.com Teams Up with Prove to Offer 10-Seconds KYC Verification to its Users (7 Aug)

EXCLUSIVE: What Tim Walz, Kamala Harris's New VP Pick, Could Mean For The Crypto Industry

Cardano Shows Signs of Recovery with Potential 20% Rise

Mark Cuban To Attend Crypto4Harris Town Hall with Other Crypto Democrats

Crypto Supporters Including Mark Cuban Backs Kamala Harris

Cats In A Dogs World Beats Memecoin Puppies Dogecoin, Shiba Inu To Top 24-Hour Gainer's Chart — W...

Join our free newsletter for daily crypto updates!