The leading cryptocurrency, Bitcoin, started the new week at around $62,000.
Despite ongoing uncertainty regarding $BTC's behavior amid new developments in US-Iran relations, an analytical firm stated that concerns about declining option values for $BTC have diminished and that recovery hinges on reaching the $62,000 mark.
The cryptocurrency options trading platform BIT (formerly Matrixport), in its latest analysis, pointed out that the perception of downside risk is beginning to weaken.
According to them, concerns about extremely low downside risk in the Bitcoin options market have gradually lessened.
The company noted that current outlooks in the options market suggest Bitcoin may be forming a higher bottom, and the market has likely passed the peak intensity of sell-off fears.
However, the company emphasized that maintaining a positive outlook for Bitcoin and holding the $62,000 support level is crucial for recovery.
According to BIT, current market participants are holding relatively small positions, which will limit further selling pressure.
The company also stated that price movements in the options market this week will be critical for Bitcoin's short-term direction. This is because a narrowing of the option curve's negative skew could reignite Bitcoin's upward momentum.
On the other hand, the analytical company also reminded that macroeconomic pressure on the cryptocurrency market continues. According to their analysis, geopolitical events and rising US Treasury yields remain the most significant risk factors for Bitcoin and other risky assets.
In conclusion, BIT added that its assessment is purely a market analysis and should not be considered investment advice.
*This is not investment advice.
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