Bitcoin Withstands the Storm as Professional Traders Show Resilience

Bitcoin fell to $56,000, losing nearly 5% of its value in a few days. However, professional traders are showing some resilience.

Bitcoin fell to $56,000 on Monday, losing nearly 5% of its value over the past few days. However, professional traders are showing some resilience, as evidenced by moderate liquidations and market indicators that suggest an unexpected stability—a stark contrast to previous phases of volatility.

Bitcoin’s التجار تحملوا العاصفةrollercoaster ride continues as the world’s leading cryptocurrency dropped to $55,860, having reached $59,090 earlier in the month. This跌幅prompted the liquidation of long positions on the futures market. Available data shows that nearly $58 million was liquidated. This relatively modest amount indicates that long-term investors were not caught off guard by this decline, which is why they don’t seem to have used excessive leverage. In fact, the premium on Bitcoin futures contracts remains at 6% despite this situation. Such a level is considered neutral, as it falls between 5% and 10%.

Moreover, Bitcoin options, another key market indicator, also reveal this lack of widespread pessimism. The delta skew, which measures the difference between call and put option prices, has remained stable around 3% in recent days, well below the 7% threshold that would indicate fear of a more significant correction. In short, even if Bitcoin is down, professional traders are not anticipating a further drastic drop in the immediate future.

The recent employment figures released in the United States, notably the ADP report, showed the creation of 99,000 jobs in August, which fell short of expectations. This data impacted Bitcoin’s momentum, as it fueled concerns about the Federal Reserve’s ability to avoid a recession and control inflation, although they are not sufficient on their own to trigger a massive wave of Bitcoin sales.

Monetary policy and tensions around the upcoming US presidency add a layer of uncertainty that could influence Bitcoin. If the history of halving cycles repeats itself, Bitcoin could still see a recovery in the coming months. If this trend continues, a rebound could materialize by the end of the year.

Even if Bitcoin’s decline fuels speculation about the end of a bullish cycle, technical indicators and macroeconomic data still do not offer clear signals of a widespread bearish trend.

Maximize your Cointribune experience with our "Read to Earn" program! For every article you read, earn points and access exclusive rewards. Sign up now and start earning benefits.

A graduate of Sciences Po Toulouse and holder of a blockchain consultant certification from Alyra, I joined the Cointribune adventure in 2019. Convinced of blockchain’s potential to transform numerous sectors of the economy, I am committed to raising awareness and informing the general public about this ever-evolving ecosystem. My goal is to enable everyone to better understand blockchain and seize the opportunities it offers. I strive each day to provide an objective analysis of the news, to decipher market trends, to relay the latest technological innovations, and to put the economic and societal challenges of this unfolding revolution into perspective.

The above is the detailed content of Bitcoin Withstands the Storm as Professional Traders Show Resilience. For more information, please follow other related articles on the PHP Chinese website!