Bitcoin's Upside May Be Limited
Some experts believe that Bitcoin's upside is capped due to options data and market maker activity suppressing rallies, although the long-term outlook remains bullish.
After last week's tumultuous event, which triggered the worst cascading liquidations in crypto's 16-year history, Bitcoin has slowed its momentum, trading at around $113,500, down about 1.5% over the past 24 hours, according to CoinGecko data.
Heightened bearish activity during the sell-off led to an increase in put options expiring on October 31, as noted by Hendrik Ghys, founder of Thalex Global, in a tweet:
Implied volatility has repriced downward to the low 40s in the short term and around 45% for longer horizons.
Author's summary: Bitcoin's upside may be capped despite bullish outlook.