Bitcoin’s price on January 30 fell by almost 4% as risk appetite waned ahead of Wednesday’s Fed meeting. There was no notable activity hedging positions via options, according to Blofin Academy.
1/6. BTC was dipping at $22.7k before the upcoming FOMC meeting on Thursday, down more than 4% over the past 24 hours and well off its high Sunday near $24,000. The rise in investor risk aversion is one of the important reasons for the price drop. pic.twitter.com/dcGvNdxwer
— Blofin Academy (@Blofin_Official) January 31, 2023
Analysts pointed to heightened interest in buying weekly put options and a lack of demand for instruments with expiries of one month or longer. They concluded that traders do not rule out a short-term pullback and are not betting on a large-scale move in the near term.
The weakness of the first cryptocurrency is being seen against a backdrop of a stronger U.S. dollar amid a global deterioration in risk asset sentiment. The dollar index has reclaimed the 102 level.
According to analysts who assessed the gamma metrics of options and open interest across various strike prices, Bitcoin’s key level sits at $23,000. Ethereum, in their view, looks bearish—this threshold sits at $1,450, about 10% below current levels.
Gamma exposure of Bitcoin (left) and Ethereum (right). Data: Blofin Academy.
According to analysts who assessed the gamma metrics of options and open interest across various strike prices, Bitcoin’s key level sits at $23,000. Ethereum, in their view, looks bearish—this threshold sits at $1,450, about 10% below current levels.
Gamma exposure of Bitcoin (left) and Ethereum (right). Data: Blofin Academy.
Earlier, Glassnode analysts noted that the first cryptocurrency has recovered from the consequences of the FTX collapse.
Earlier, LookIntoBitcoin experts suggested Bitcoin had entered the early stage of a bull market.