Recent data from Glassnode has revealed changes in market sentiment for Bitcoin as reflected in the 25 Delta Skew metric. This indicates a decrease in short-term panic among traders, while long-term caution persists.
Reduction in Short-Term Panic
The analysis shows that the one-week 25 Delta Skew has cooled from over 10% to 2.96%. This suggests a decline in short-term concerns among traders. However, despite this positive shift, the market remains cautious.
Long-Term Caution
Longer-term outlooks still raise questions, with three-month and six-month skews recording negative values of -2.6% and -4.3% respectively. This put-heavy trading volume indicates that investors are still hedging risks.
Historical Analogies
Similar skew behavior was observed in June 2021, when Bitcoin transitioned into a consolidation phase before a risk-on rally post-halving. A sudden transition to positive skew could again act as a catalyst for bullish growth.
Currently, Bitcoin's 25 Delta Skew indicates a picture of cautious optimism. Analyzing these changes may be key to understanding upcoming fluctuations in the cryptocurrency market.
