Bitcoin's Upside May Be Capped
Some analysts believe that Bitcoin's upside is capped due to options data and market maker activity, despite a long-term bullish outlook.
Following a tumultuous event last week, Bitcoin has entered calmer waters, but its momentum has slowed, leaving it to trade at around $113,500, down 1.5% over the past 24 hours, according to CoinGecko data.
Heightened bearish activity has led to an increase in put options expiring on October 31, as noted by Hendrik Ghys, founder of Thalex Global, in a tweet.
Implied volatility has repriced downward to the low 40s in the short term and around 45% for longer horizons.
The long-term outlook for Bitcoin remains bullish, but current market conditions may suppress rallies.
Author's summary: Bitcoin's upside may be capped due to market conditions.