Bitcoin options traders await a catalyst in the asset as BTC slips below $27,000

Bitcoin options traders are awaiting a catalyst to steer the asset in the right direction, as implied volatility lies in a dormant state.
Investor sentiment is leaning towards neutral ahead of the quarterly settlement based on options data.
Bitcoin price slipped below the $27,000 level as market participants awaited a catalyst and a new narrative in the asset.

Bitcoin options traders expect a catalyst in the asset to boost the volatility in the asset’s price. Closing in on the quarterly settlement of Bitcoin options, the investor sentiment is relatively neutral. BTC nosedived below the $27,000 level in the absence of a new narrative in Bitcoin.

Also read: Ethereum price steadies above $1,700 as ETH holders grow confident ahead of token unlock

Bitcoin options traders continue hunt for a catalyst, what it means for BTC

Bitcoin, the largest asset by market capitalization continues to experience fluctuations while other altcoins are experiencing a liquidity crunch. Analysts at the options data intelligence tracker Blofin Academy note that with the upcoming quarterly settlement of the crypto market, Bitcoin could experience volatility.

3/7. Apart from front-end options, the implied volatility (IV) has also entered a dormant state. The market seems to be waiting for a catalyst to show the right direction between price breaking upwards or price downwards. pic.twitter.com/2AyjB6umNO
— Blofin Academy (@Blofin_Academy) March 27, 2023

Implied Volatility(IV) has entered a dormant state as seen in the chart below. IV is the market’s expectation of volatility and formally it is one standard deviation range of expected movement of an asset's price over the course of a year.

Investor sentiment is leaning towards neutral, while in the case of Ethereum it is slightly bearish according to Blofin Academy’s analysts.

BTC price slips below the $27,000 level

Amidst the rising uncertainty among crypto market participants, BTC nosedived below the $27,000 level earlier today. The largest asset by market capital is exchanging hands at $26,959.

In the absence of a catalyst and a narrative, options traders expect Bitcoin price volatility to decline or remain relatively low. @tedtalksmacro, a crypto analyst argues that Bitcoin’s ongoing consolidation is part of the asset’s run up to its new all-time high.

Just like every other #Bitcoin cycle, the current has it's nuances. However, I'd think we're currently trading in an environment akin to September - November 2019.

Fed in 2019:
- Cut rates 3x by October
- Began expanding balance sheet in September

Fed in 2023:
- Begin expanding… pic.twitter.com/bVHdk2DPxj
— tedtalksmacro (@tedtalksmacro) March 28, 2023

The expert compared the current trading environment to the period between September and November 2019. The analyst’s target for Bitcoin’s all-time high is nearly $100,000.

Share: Cryptos feed

Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.

If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.

FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.

The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.