In a matter of days, investors' view on the outlook for the Bitcoin price has flipped from being bearish to bullish, as represented by a shift in options market pricing. The flip in investor sentiment comes as the Bitcoin price surges above the $28,000 level for the first time since early last June, taking gains since earlier monthly lows to over 44%.
When Bitcoin dipped under $20,000 for the first time in two months last week, the outlook for the BTC price according to the 25% delta skew of Bitcoin options expiring in 7, 30, 60, 90 and 180 days fell to their lowest levels of the year of between -5 to -10.
However, the aggressive price recovery has seen the 25% delta skew of Bitcoin options expiring in 7, 30, 60, 90 and 180 days recover rapidly into bullish territory, with all close to 5. For the 7-day 25% delta skew, that’s its highest level since mid-February. For the 30, 60 and 90-day skews, that’s their highest level since mid-January. Finally, for the 180-day skew, that is its highest level since November 2021.
All Comments