In a new report by Bybit, the second-largest cryptocurrency exchange, in collaboration with Block Scholes, key insights into the current state of the cryptocurrency market are presented, particularly for BTC and ETH.
Bearish Divergence in Derivatives
Short-term options on BTC and ETH have shown bearish signals, indicating trader caution despite positive funding rates in perpetual futures markets.
BTC Faces Resistance at $120K
BTC, trading within a range of $115K to $120K, briefly touched the lower bound on July 25 following a major sell-off of 80,000 bitcoins linked to a Satoshi-era wallet. Open interest in BTC and altcoin perpetuals exceeded $15.5B the same day.
Market Situation for ETH and Altcoins
ETH continues to perform well in spot markets, gaining 3.5% over the last week. However, the market is showing signs of cooling with implied volatility compressing to 64%. Altcoins such as SOL, XRP, and DOGE faced corrections losing 9%, 11%, and 10% respectively.
The Bybit report highlights shifts in market dynamics, where, despite positive funding rates, there are signs of caution particularly among BTC and ETH traders.
