Why the crypto market is red & scary
[A thread, with Hopium]
$BTC options expire quarterly.
Options trading, in a very simple sense, are positions where an individual can buy or sell an asset at a set price on or before a specific date.
So how does this effect the market?
[A thread, with Hopium]
$BTC options expire quarterly.
Options trading, in a very simple sense, are positions where an individual can buy or sell an asset at a set price on or before a specific date.
So how does this effect the market?
Call options: a buy contract
Put options: a sell contract
There is currently $6B in options set to expire on Friday.
Max pain theory suggests we will head towards the max pain point as we get closer to the option contracts expiration.
More info: coindesk.com/bitcoin-trader…
Put options: a sell contract
There is currently $6B in options set to expire on Friday.
Max pain theory suggests we will head towards the max pain point as we get closer to the option contracts expiration.
More info: coindesk.com/bitcoin-trader…
The reason this is, is whales expected March to be a bearish month. This is traditionally true as 8/10 last March months for $BTC have been in the red.
However, this was not the case and now, whales are forced to try and manipulate the prices down to minimize losses.
However, this was not the case and now, whales are forced to try and manipulate the prices down to minimize losses.
Why is this bullish?
Because this is short-term pain and an amazing buy the dip opportunity.
In January, we had $3.7B in $BTC options set to expire on January 29th.
This is where things get REALLY bullish.
Because this is short-term pain and an amazing buy the dip opportunity.
In January, we had $3.7B in $BTC options set to expire on January 29th.
This is where things get REALLY bullish.
Chart patterns are very similar.
January 11th - 25th we dipped 32%
March 15th - 22nd we are down 14%
I do think we see more short-term pain, but no where near the 32% we had in January. This means market conditions are far stronger than 3 months prior.
Now for some hopium.
January 11th - 25th we dipped 32%
March 15th - 22nd we are down 14%
I do think we see more short-term pain, but no where near the 32% we had in January. This means market conditions are far stronger than 3 months prior.
Now for some hopium.
Looking back at the chart above, after the options expired, $BTC went on an ABSOLUTE tear.
We went from $28k to $60k without red on the weekly.
Thinking of the current market conditions with institutions clients begging to buy $BTC, another crazy move is imminent.
We went from $28k to $60k without red on the weekly.
Thinking of the current market conditions with institutions clients begging to buy $BTC, another crazy move is imminent.
I believe this could very well be the next leg up for all our bags. It would make sense, the fundamentals have only grown stronger.
$BTC rises -> $ETH rises -> $ALTS take over again
All leading into another DeFi summer where $ETH becomes deflationary and upgrades on AMMs.
$BTC rises -> $ETH rises -> $ALTS take over again
All leading into another DeFi summer where $ETH becomes deflationary and upgrades on AMMs.
Anyone freaking out bearish may be experienced, but aren't thinking logically. I like to look at analytics and patterns before making bullish/bearish assumptions.
Enjoy the ST pain because if the story the analytics are telling us is true, the next leg up will be glorious.
Enjoy the ST pain because if the story the analytics are telling us is true, the next leg up will be glorious.
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