Bitcoin Expected to Trade Sideways Between $62,000 and $67,000

Market uncertainty is likely to keep the price of the leading cryptocurrency within a narrow range of $62,000 to $67,000 in the near term, according to QCP Capital.

QCP: Post-Jackson Hole, the desk saw aggressive Call Spread buying, but also witnessed heavy selling of calls around the 100k strike out to Mar 2025. While the move higher in price has been decisive, the vols are indicating hesitation in the market. As front-end vols drift lower,…

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Optimism following Federal Reserve Chair Jerome Powell’s speech in Jackson Hole failed to counteract the market’s hesitation, as implied volatility did not respond to the rise in spot prices, experts noted.

According to their observations, aggressive demand was seen only in contracts with distant expiration dates.

“We observed active selling of calls around the $100,000 strike until March 2025. This may indicate that the market is bullish but does not expect explosive movement so soon,” the review stated.

Experts also noted that implied volatility for terms up to October leans more towards puts. In other words, traders are hedging against potential price declines in the near future.

“This is surprising given the prevailing bullish sentiment. It can be perceived that market participants were prepared for this and quickly locked in profits,” analysts explained.

Earlier, QCP Capital recorded significant purchases of December call options.

Bitfinex previously described bitcoin as a safe-haven asset in light of recession risks.