The post Bitfinex Analysts Suggest Bitcoin (BTC) Has Potentially Reached Local Bottom Amid Declining Volatility appeared on BitcoinEthereumNews.com.

Bitcoin’s potential price stability gains momentum, say Bitfinex analysts. Historical volatility and implied volatility in the Bitcoin options market converge significantly. “Investors are anticipating Bitcoin’s price to remain within a specific range,” according to Bitfinex analysts. Bitcoin’s volatility metrics suggest it might have hit a local bottom. Here are the insights from Bitfinex analysts. Indicators of Bitcoin Hitting a Local Bottom Recent analyses from Bitfinex highlight that Bitcoin might have reached a local bottom. According to their assessment, data from the options market reveal significant signs of a slowdown in price fluctuations. This slowdown can be attributed to a contraction in the gap between implied and historical volatility, which now stands at approximately 90%. Such a trend indicates growing investor confidence in Bitcoin’s price stability within a defined range. Decreasing Selling Pressure Alongside the decreasing volatility, a notable drop in selling pressure has also been observed. This reduction in market uncertainty, coupled with the behavior of investors in the options market, could signal a positive shift for Bitcoin. Bitfinex analysts have identified that some short-term holders are exiting their positions, often at a loss, which is a typical market behavior seen before a recovery. Historical data suggests that when these short-term pressures ease, markets tend to stabilize and possibly rebound. Long-term and Short-term Holder Dynamics The dynamics between long-term and short-term Bitcoin holders are pivotal in this context. While long-term holders continue to realize significant gains, the selling activity of short-term holders appears to be tapering off. Bitfinex analysts note that the Spent Output Profit Ratio (SOPR) for short-term holders is currently at 0.97, indicating sales at a loss. This behavioral pattern was also observed in previous market cycles where after an initial phase of loss-induced selling, the market regained its strength as selling pressure subsided. Conclusion In summary, Bitfinex’s…

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Filed under: News - @ July 9, 2024 9:22 pm