Bitcoin’s $20K support looks weak, but pro traders are neutrally positioned
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Bitcoin (
The $20,000 support is weak, but traders are not bearish
These two derivatives metrics — options skew and long-to-short — suggest that the 4.5% Bitcoin price correction since the $21,000 test on Oct. 29 was backed by a moderate level of distrust from leverage buyers.
A more optimistic sentiment would have caused the 60-day delta skew to enter the negative range and possibly have pushed the long-to-short ratio to higher levels. It is important to note that even pro traders can misinterpret the market, but the present reading from the derivatives market favors a weak $20,000 support.
From an optimistic perspective, there is no indication that pro traders expect a negative move. Basically, nothing changes even if the price revisits the $19,000 range because 50 days have passed since Bitcoin last traded above $22,000.
The views and opinions expressed here are solely those of the author and do not necessarily reflect the views of Cointelegraph.com. Every investment and trading move involves risk, you should conduct your own research when making a decision.
