The top cryptocurrency by market capitalization reached a year high of about $12,500 on the 17th of August but has seen some significant decline in price recently. Its price fell to as low as $9,981 today, breaking below the $10K level. This has indeed caused some panic. Even worse, bitcoin options traders anticipate the further decline of the asset's price in the short-term.
In the past seven days, BTC has seen a sharp 17% drop in price. As a result of this, several traders, especially the options analysts, traders, and investors, have shared their opinions on the current situation.
And as the bitcoin price continues to dwindle for the fourth consecutive day, it's of the opinion of many that this is a sign of a further bearish move in the market. However, another school of thought believes the price shows some level of resilience in this region, making it an important support area.
Bearish Market Would Be Short-Lived, SKEW Researchers Opine
Researchers at SKEW, a leading provider of professional data analytics and trade execution services for the cryptocurrency market also shared their opinion via a tweet indicating bitcoin's price decline would be short-term. On the medium-term, price is said to be neutral while it remains bullish long-term.
#bitcoin options flows show:– short-term bearish– medium-term neutral– long-term bullishA fair representation of consensus?
— skew (@skewdotcom) September 8, 2020
What Traders Should Expect In Coming Days
There are many sentiments about BTC price from famous BTC traders and analysts such as Edward Morra. They hope there will be some bullish activities around the $8,800, $9,650, and the $10,620 regions as CME gaps get filled.
According to Edward Morra's tweet:
$BTCCME chart has a fresh gap 10620, usually most of the gaps (~90%) are filled within few days max, with exceptions (10%) that take a long time (like your $9,6 gap from July). So, it makes sense to assume higher gap at 10620 gets filled first here and then we see how it goes.— Edward Morra (@edwardmorra_btc) September 8, 2020