Bitcoin has remained on a stagnant stage as far as the pricing is concern. But in the last few week it has given an impression to breach the $9000 mark. It has also suggested the price volatility has dropped significantly in the Bitcoin market.
Now analyst have become skeptical about the growth of Bitcoin in a positive manner as it has failed to breach the $9400 mark in the recent times.
However there are still positive signs for Bitcoin to reach the 9000 mark but whenever it dips, there is a certain negativity arousing in the market.
Bitcoin’s skew has been focused on by the crypto media which proves that the traders are turning bearing in the recent period of time. Skew is an option-trading which compares put and call options within the same expiration date.
When skew is positive it means that volatility for puts is larger than calls. It is also an indicator that of a higher insurance cost for a downside price move.
The protection for the downside cycle is costlier than the upside but analysis opens up a different case altogether. The current level is in fact the first in history. Earlier it used to be totally opposite than what it is today.
The measure has been used at 25% delta which translates into options priced at the same bearing.
There is also a different way for professional which could be done by future markets professionals and possible swaps. The 3-month annualized premium has been at a firm 4% level.
A single derivatives indicator will not provide a clear projection of the market as the Bitcoin (BTC) options market is still a nascent industry.
In fact a skew data of 25 percent itself should be kept away from bearish indicator.