- An open interest in Bitcoin options market is indicative of growing bearish pressure.
- BTC/USD needs to clear $7,000 to improve the technical picture.
The put/call ratio for Bitcoin Options hints on growing selling pressure on the market, according to the recent data, provided by Skew. The analysts emphasize that the conditions of the derivative markets are often behaving as harbingers of the upcoming movements on spot markets. Currently, Bitcoin’s options open interest is indicative of increased selling pressure.
The difference between open interest in options with sell position and options with buy position has been growing steadily. Traditionally, a balanced market has a put/call ratio between 0.7 to 1. If it goes higher, the market is dominated by bears, Low ration means that bulls prevail.
Over the past few weeks, open interest increased by 45%, while the price grew only by 17%. Now that the put and call ratio has recovered from March 22 low 0.42 and entered the average range of 0.7-1 traders expect either consolidation or the further sell-off as the number of puts is gradually increasing, compared to the calls.
Top-3 coins overview
BTC/USD is changing hands marginally below $6,900 amid low trading activity on Tuesday. The first digital coin has gained about 2.5% since this time on Monday, but the upside momentum faded away on approach to the critical resistance $7,000. A failure to move above this barrier may increase short-term bearish pressure and push BTC towards critical $6,000.
ETH/USD came close to $160.00 during early Asian hours only to retreat to $157.00 by press time. The coin is moving within a short-term bullish trend amid shrinking volatility; however, a sustainable recovery is only possible if the price clears daily SMA50 at $165.50. Otherwise, the coin is likely to stay range-bound with bearish bias.
XRP/USD is stuck in the middle of the range $0.1800-$0.1900. a sustainable move outside the range will define the price direction for the nearest future with the key resistance created by psychological $0.2000; the support is seen at $0.1700 (23.6% Fibo retracement)