Bitcoin Slides Back Below $30,000, But These Metrics Show BTC Bulls Still Anticipating Further Upside
Bitcoin (BTC) fell back to the south of the $30,000 level on Monday to hit its lowest point since late June in the $29,600s.
The world’s most valuable cryptocurrency network by market capitalization has now pulled back around 6% from the more than one-year highs it hit last Thursday around $31,800.
News that a district judge had ruled that they did not view XRP as a security, at least outside of the context of Ripple’s sales of the token to financial institutions, had sent crypto markets surging last week.
But profit-taking in wake of this year’s spectacular bitcoin rally (BTC was last up more than 80% year-to-date) prevented BTC from breaking convincingly to the north of its recent mid-$29,000 to $31,000ish range.
Some analysts said that concerns about the financial health of the world’s largest crypto exchange Binance, which was last week reported to be looking at letting up to a third of its workforce go, and this week was reported to be scaling back on employee benefits, could be weighing on sentiment.
Binance’s troubles suggest the much-discussed “crypto winter” that saw a big contraction for the industry in 2022 is yet to fully thaw.
However, the fact that bitcoin is finding strong support in the mid-$29,000s and is yet to break convincingly to the south of its 21-Day Moving Average are both good signs that the bulls have completely relinquished control just yet.
Indeed, various other metrics suggest that bulls are still anticipating further upside.
Bitcoin options markets still suggest that investors are paying a premium for BTC options that pay out in case of further upside, a sign of still strong sentiment.
While the bitcoin price may be at one-month lows, the 25% delta skew of bitcoin options expiring in 7, 30, 60, 90
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