Bitcoin Option Selling Likely Before Quarter End, BTC Price Rejected At $72,000

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28 Mar 2024

As the Bitcoin volatility curve remains very steep, the options selling could resume soon putting further pressure on the BTC price.

STORY HIGHLIGHTS

Despite net inflows, the BTC price reaction appears disrupted.
Bitcoin volatility curve remains very steep suggesting strong options selling ahead.
Bitcoin can see 2016-like correction if its fails to make new all-time highs.

The world’s largest cryptocurrency Bitcoin (BTC) registered a spike all the way to $72,000 on Wednesday, however, couldn’t sustain the momentum facing immediate selling pressure. As of press time, the Bitcoin price is trading at $69,640 with a market cap of $1.37 trillion.

Bitcoin (BTC) Price Sees Selling Pressure

In recent trading sessions, Bitcoin (BTC) surged to highs near 71.8k during the US market open, only to face a sharp rejection thereafter, according to insights from QCP Capital. Subsequently, BTC dipped below 68.4k, while Ethereum (ETH) touched lows of 3,458, forming an evening star-like pattern over the past three days on both charts.
Despite expectations of a net inflow day for spot Bitcoin ETF, the market’s price-reaction function appears disrupted, leaving uncertainties regarding the potential for a significant rally following a positive number. Furthermore, BTC’s realized volatility is trading approximately 10% below implied volatility levels, prompting speculation among traders. This discrepancy may stem from traders adopting a cautious stance to observe the first-ever quarter-end rebalancing on spot ETFs.

BTC Options Selling Strategy

In light of quarter-end dynamics, QCP Capital suggests a strategy of option selling, particularly as the volatility curve remains highly steep. The desk observes significant selling of options during this period, prompting consideration of selling back-end volatilities
Furthermore, with forwards maintaining elevated levels, QCP Capital recommends selling the Spot-Forward Basis and rolling short calls further out as an attractive option strategy. These insights come as market participants navigate quarter-end movements and seek to optimize their trading strategies amidst evolving market conditions.
Popular Bitcoin analyst Rekt Capital explains that despite the current upside in the Bitcoin price over the last week, analysts continue to remain cautious. Rekt capital raised concerns over the possibility of a breakdown to lower prices reminiscent of the 2016 market pattern if Bitcoin fails to establish new highs. Analysts emphasize the significance of the pre-halving retrace bottom and speculate that the bottom of the re-accumulation range may hover around this level.

Crypto Prices Today March 28: Bitcoin At $69K, ETH, XRP, SOL Dip As Mantle Rallies

The crypto prices today saw a notable pullback as Bitcoin extended below $70,000 while Ethereum geared up to drop lower than $3,500.

STORY HIGHLIGHTS

Bitcoin continued declines and failed to sustain above $70,000.
Ethereum inched closer to extended lower than $3,500 today.
The BNB coin and Dogecoin defied the bearish trend with significant gains.

The top crypto prices today continued declining as the Bitcoin (BTC) price dropped below the $70,000 level again. In addition, the Ethereum price approached a dip below $3,500. Meanwhile, other top altcoins, such as Solana (SOL), XRP, Cardano (ADA) plummeted significantly.

Major Crypto Prices Today

The Bitcoin price was down by 0.62% reaching $69,655.55 at the time of writing on Thursday, March 28. On the other hand, it’s trading volume surged 14.39% to $41.15 billion in the last 24 hours. Meanwhile, the crypto boasted a market cap of $1.36 trillion.
Turning to altcoins, the Ethereum price dipped by 2.05% to $3,511.85 at press time with a market valuation of $421.81 billion. Whilst, ETH saw its trading volume soar by 18.19%, reaching $20.01 billion. Meanwhile, the Binance Coin (BNB) price defied the bearish momentum and gained 1.62%, reaching $588.10. In addition, its 24-hour trade volume surged by 6.44% to $2.22 billion.
The Solana price inched closer to drop below the $180 mark again. The Solana price was down by 2.82%, settling at $183.84. On the contrary, SOL witnessed a 10.69% gain in trade volume to $3.84 billion in the last 24 hours. Whilst, the XRP price dropped below $0.62 level. The XRP price recorded a dip of 2.86%, reaching $0.6117. On the other hand, XRP’s trading volume soared 10.09% to $2.01 billion.
Meanwhile, the Cardano price slipped 2.67% to $0.6434 today. Whilst, ADA registered a 8.74% hike in its 24-hour trading volume, settling at $661.10 million. As the top crypto witnessed a bearish session, popular meme coins experienced increased volatility. The Dogecoin price was up by 7.22% to $0.1976 while its rival, Shiba Inu price plummeted by 2.36% and traded at $0.00003035.
Also Read: Spot Ethereum ETF: BlackRock CEO Sees Approval Despite Security Scare

Top Crypto Prices Today Are

Pepe Coin

The Pepe Coin (PEPE) crypto, a hyped meme coin, extended losses with major drop in value today. At press time, the Pepe Coin price was down by 5.72% to $0.000007592 with a market valuation of $3.19 billion. In addition, its 24-hour trade volume for PEPE tumbled 29.03% to $644.85 million.

Mantle Rallies 27%

Mantle (MNT), an Ethereum Layer 2 crypto project, recorded a impeccable rally of nearly 27% and ranked as the top crypto gainer today. The Mantle price was up by 26.92% to $1.19 at the time of reporting. Moreover, its trade volume skyrocketed by 233.29% to $829.54 million. Furthermore, the MNT crypto recorded a new all-time high of $1.48 amid the rally today.
Also Read: Michael Saylor Stays Positive on Bitcoin; Places it Above MicroStrategy Shares