According to Glassnode analysts, the price of Bitcoin will be influenced by rising implied volatility and higher leverage in the derivatives market.
Implied volatility in the Bitcoin options market, with tight range trading over the last two months, has surpassed a 60%-70% price band. A similar dynamic was previously observed before the May 2021 crash, the liquidation of shorts in July and October.
Open interest in the Bitcoin futures market reached 1.94% of the capitalization of BTC. Exceeding the threshold of 2% previously led to a sharp reduction in leverage.
A similar picture was formed in the market of perpetual contracts – an open interest of 1.28% of the total market value of BTC entered the “risk zone.”
The company experts believe that the largest buying activity in the spot market is concentrated in the US and European markets, while the main selling pressure is formed during the daytime in Asia.