According to the latest report According to QCP Capital, options data reveals a drop in trading volatility, particularly for bitcoin, meaning cryptocurrency traders could be in for a quieter summer.
The research firm, known for spotting new market trends, notes that data patterns on the charts suggest we are likely in for a shallower trading period for now.
This comes as the market is still recovering from recent ups and downs, leaving traders in limbo trying to make sense of the next big play.
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An active summer awaits ethereum despite the expected market calm
The only exception is that ethereum options show significantly higher implied volatility than bitcoin. This suggests that although the market, overall, could cool down, ethereum could still see a relative increase in trading.
In its report, QCP Capital advised traders to consider accumulation strategies, particularly for ethereum, in preparation for what they call “the long, quiet summer.” This approach could be beneficial if the market maintains the expected low volatility.
Furthermore, they do not foresee any significant price movement for ethereum in July, aligning with expectations set around the possible approval of an ethereum spot exchange-traded fund (ETF) later in the summer.
However, speculation surrounding the approval of an ethereum spot ETF is generating buzz, and traders are eyeing the approval of the S-1 form that could bring more action to the ethereum market.
ethereum's implied volatility currently has a 10vol premium to bitcoin, which QCP analysts expect to narrow as the market begins to price in the early approval of the US Spot ETF.
This suggests that while the summer could be calmer, there could still be critical developments that could influence market dynamics in the latter part of the season.
bitcoin and eth Market Performance and Sentiment
Reflecting recent market performance, bitcoin and ethereum have shown notable declines. After a bullish phase fueled by the US SEC's approval of ethereum spot ETFs last month, cryptocurrencies have closely mirrored each other in market declines.
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Over the past week, ethereum has seen a significant drop of 8.5%, with a 1.4% drop in the last 24 hours alone. Similarly, bitcoin has seen a 1.4% decline today, continuing a week-long bearish trend that took its price below $66,000.
In light of these fluctuations, bitcoin maximalist Samson Mow has made intriguing twitter.com/Excellion/status/1801314910363914665?ref_src=twsrc%5Etfw” target=”_blank” rel=”nofollow”>predictions about possible market movements. According to Mow, the likelihood of bitcoin experiencing a significant price rise, or what he calls an “Omega candle,” increases as market pressure increases.
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He twitter.com/hashtag/bitcoin?src=hash&ref_src=twsrc%5Etfw” target=”_blank” rel=”nofollow”>#bitcoin The coil is super compressed now. The longer we go without a Godzilla candle, the more likely we are to get an Omega.
– Samson Mow (@Excellion) twitter.com/Excellion/status/1801314910363914665?ref_src=twsrc%5Etfw” target=”_blank” rel=”nofollow”>June 13, 2024
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