Bitcoin
Quiet summer ahead for Bitcoin, but Ethereum has potential for surprise – QCP Capital – TradingView News
According to the latest QCP Capital report, options data reveals a drop in trading volatility, especially for Bitcoin, meaning cryptocurrency traders could be in for a calmer summer.
The research firm, which is known for spotting new market trends, highlights that data patterns on the charts suggest we are likely in for a shallower trading period for now.
This comes at a time when the market is still recovering from recent ups and downs, leaving traders in limbo trying to figure out the next big move.
Ethereum is poised to have an active summer despite anticipated market lull
The only exception is that Ethereum options have significantly higher implied volatility than Bitcoin. This suggests that although the market, in general, may cool down, Ethereum could still see a relative increase in trade.
In its report, QCP Capital advised traders to consider accumulation strategies, especially for Ethereum, in preparation for what they call a “long, quiet summer.” This approach could be beneficial if the market maintains the expected low volatility.
Additionally, they do not anticipate any significant price movements for Ethereum in July, aligning with established expectations surrounding the potential approval of Ethereum spot exchange-traded funds (ETFs) later in the summer.
However, speculation surrounding the approval of an Ethereum spot ETF is creating a buzz, with traders eyeing the approval of Form S-1, which could bring more action to the Ethereum market.
Ethereum’s implied volatility currently sits at a 10 vol premium to Bitcoin, which QCP analysts expect to decline as the market begins to price in early approval of the US spot ETF.
This suggests that although the summer may be calmer, there could still be critical developments that could influence market dynamics in the latter part of the season.
Bitcoin and ETH market performance and sentiment
Reflecting on recent market performance, Bitcoin and Ethereum have shown noticeable declines. After a bull run spurred by the US SEC’s approval of spot Ethereum ETFs last month, cryptocurrencies have closely mirrored market crises.
Last week, Ethereum recorded a significant decline of 8.5%, with a 1.4% drop in the last 24 hours alone. Similarly, Bitcoin suffered a 1.4% drop today, continuing a week-long downtrend that brought its price below $66,000.
In light of these fluctuations, Bitcoin maximalist Samson Mow has made intriguing predictions about possible market movements. According to Mow, the likelihood of Bitcoin experiencing a significant price increase – or what he calls the “Omega candle” – is increasing as market pressure increases.
O #Bitcoin the coil is overcompressed now. The longer we go without a Godzilla candle, the more likely we are to get an Omega.
Featured image created with DALL-E, TradingView chart