The price of bitcoin stayed below the crucial $30,000 resistance level as it began a new downtrend, with a steep drop below the $28,500 support level. However, Bitcoin’s price behavior remains bearish on the short-term price chart. BTC has settled above the $28,000 support line at the time of writing. The coin has lost 2.38 percent of its value in the last 24 hours and has recovered part of its value in the last week.
One indicator, according to a well-known cryptocurrency analyst, points to a bearish view for Bitcoin (BTC) in the next few weeks. In a recent strategy session, the anonymous host of InvestAnswers claims that bearish bets outnumber bullish bets for the contracts ending July 29th, based on Bitcoin options data.
Bears Overshadow the Bulls
According to InvestAnswers, the puts volume expecting Bitcoin to drop to $25,000 and lower has reached $165 million, while the calls expecting BTC to achieve $30,000 by late July have reached $63 million, according to statistics from crypto options exchange Deribit.
“The short-term outlook for July you can see here some calls, about $33 million on $40,000, which is a small bump. But a lot of very negative bets. You’ve got $29 million on a $15,000 Bitcoin, $60 million on a $20,000 Bitcoin and $76 million on a $25,000 Bitcoin. And of course $30 million on where we are right now as insurance.”
The crypto researcher also said that long-term options data indicates a more hopeful future for Bitcoin. Furthermore, he said that the call volumes betting on Bitcoin reaching $70,000 or more by December have surpassed $243 million, and puts volumes betting on Bitcoin reaching $30,000 or less have surpassed $95 million.
He said that one can see significant bets here as of December 2022.” By December, Deribit has bet $64 million on a $100,000 Bitcoin, $101 million on an $80,000 Bitcoin, and $78 million on a $78,000 Bitcoin.
According to InvestAnswers, Bitcoin is anticipated to have bumpy moves between now and late July before recovering after the Federal Reserve provides more clarity on monetary policy. He further said that one can expect some turbulence for the next eight to twelve weeks. BTC will be able to bounce and move on once it gets through August and receive some clarity from the Fed.