Here’s my take: when people are this heavily insured, it’s often not the point when prices are falling the hardest.
Of Deribit’s 10 most active Bitcoin options, 8 are puts, with strike prices between $69,000 and $74,000. The most popular one expires on November 27. In plain terms, seasoned traders are paying for insurance against a move down to $69,000.
But on the other hand, Bitcoin is hovering around $73,700, still above its 200-day moving average of $73,200; ETFs saw outflows of just $95 million yesterday, so selling pressure has eased considerably; and liquidations totaled $725 million over the past 24 hours.
Which side are you on? A: Follow the insurance buyers—there’s still more downside ahead; B: When everyone’s afraid, maybe the market can’t fall much further?
$BTC
Of Deribit’s 10 most active Bitcoin options, 8 are puts, with strike prices between $69,000 and $74,000. The most popular one expires on November 27. In plain terms, seasoned traders are paying for insurance against a move down to $69,000.
But on the other hand, Bitcoin is hovering around $73,700, still above its 200-day moving average of $73,200; ETFs saw outflows of just $95 million yesterday, so selling pressure has eased considerably; and liquidations totaled $725 million over the past 24 hours.
Which side are you on? A: Follow the insurance buyers—there’s still more downside ahead; B: When everyone’s afraid, maybe the market can’t fall much further?
$BTC
