Crypto Market Sees Halloween Crash, Here’s What Bitcoin Options Data Signals

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As a seasoned crypto investor with over a decade of experience navigating through bull and bear markets, I can’t help but feel a sense of deja vu as the market takes another tumble on Halloween. The current correction is reminiscent of the wild rollercoaster rides we’ve experienced in the past, with Bitcoin dipping below $70,000 and altcoins following suit.

On Thursday, the broader cryptocurrency market saw a significant sell-off, turning into a rather spooky Halloween experience for investors. The price of Bitcoin plummeted by 4.11%, currently standing at approximately $69,320, with Bitcoin options data indicating a fierce struggle between the bulls and bears. A comparable correction is evident in the altcoins sector, where Ethereum (ETH), Solana (SOL), Dogecoin (DOGE), and Cardano (ADA) have each dropped by around 5-7%.

Crypto Market Crash: Bitcoin and Altcoins Bleed Heavily

Tonight, before Halloween, Bitcoin (BTC) and the overall crypto market are experiencing a significant wave of bearish attitude. Noted crypto expert IncomeSharks suggests that the BTC price might drop to around $66,000, while still maintaining a positive daily chart perspective. The analyst also anticipates that the minimum dip could reach $68,000 before discovering new support levels. Additionally, Bitcoin’s active addresses have decreased by 25%, suggesting reduced activity within the crypto asset class.

#Bitcoin Analysis: Dipping as low as $66,000 doesn’t change our bullish outlook on a daily basis. I anticipate the lowest point might be around $68,000 before setting up new support. The only investors who will find this price drop enjoyable are those who have been bearish and incorrect for several months now.

— IncomeSharks (@IncomeSharks) October 31, 2024

crypto expert Benjamin Cowen asserts that it may be premature to rejoice over Bitcoin’s recent surge above $72,000, given its proximity to falling below $70,000 for October. Cowen also notes that the monetary policy will likely exert influence once more, stating: “The monetary policy will come into play again.

Tomorrow, we will receive labor market data. This information could help determine whether the perspective on Bitcoin (BTC) for the remainder of Q4 will lean more towards a cyclical view or a monetary policy view. By the end of the week, it should be clear which scenario is more probable.

Additionally, he mentioned that the cryptocurrency market is finding it difficult to move above the descending trendline, and at the same time, the value of altcoins relative to Bitcoin (ALT/BTC) is dropping further. Cowen reaffirms his prior forecast, suggesting if this is the start of a more significant decline, Bitcoin’s dominance could rise further, potentially exceeding 60% in the future.

Crypto Market Sees Halloween Crash, Here’s What Bitcoin Options Data Signals

Bitcoin Options Signals Tough Fight Between Bulls and Bears

On this coming Friday, approximately 28,000 Bitcoin options, valued around $2 billion, are scheduled to expire. These options have a put-call ratio of 0.92, which indicates that there is slightly more demand for put (sell) options than call (buy) options, suggesting a close contest between bullish and bearish sentiments in the market. The significant level at which this struggle might reach resolution is around $69,000, according to Deribit data. This suggests an increase in trading activity as both sides attempt to outmaneuver each other.

Due to the upcoming U.S. election having a significant impact on financial markets, the implied volatility for Bitcoin’s at-the-money options on November 8th is almost 70%. Moreover, the fluctuations in Bitcoin’s price close to record highs are offering numerous profitable trading chances from various market viewpoints.

Crypto Market Sees Halloween Crash, Here’s What Bitcoin Options Data Signals

Altcoins Face Even Steeper Correction

The correction in the altcoin space is even steeper as the Ethereum (ETH) price tanks over 5% taking a dip under $2,500 earlier today. Later today, 137,000 ETH options are expiring with a notional value of $350 million, a put-call ratio of 0.69, and a max pain point of $2,550.

Conversely, Solana (SOL) has encountered difficulties in maintaining its recent surge and has been turned away at $175. Currently, the SOL price stands at around $167, having dropped by 6%. Despite this setback, market analysts maintain a positive outlook, with growing predictions pointing towards Solana reaching new record highs.

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2024-11-01 08:32