Ethereum
A quiet summer ahead for Bitcoin, but Ethereum has surprise potential – QCP Capital – TradingView News
According to the latest report from QCP Capital, options data reveals a drop in trading volatility, particularly for Bitcoin, meaning cryptocurrency traders could experience a quieter summer.
The research firm, well known for spotting new market trends, points out that the data patterns in the charts suggest that we are likely to experience a shallower period of trading at the moment.
This comes as the market is still recovering from recent ups and downs, leaving traders in limbo as they try to make sense of the next big play.
Ethereum poised for an active summer despite expected market lull
The only exception is that Ethereum options have significantly higher implied volatility than Bitcoin. This suggests that while the market, in general, may be calming down, Ethereum could still see a relative increase in trading.
In its report, QCP Capital advises traders to consider accumulation strategies, particularly for Ethereum, in preparation for what they call “the long, quiet summer.” This approach could be beneficial if the market maintains the expected low volatility.
Additionally, they do not anticipate significant price movements for Ethereum in July, which is in line with expectations set around the potential approval of an Ethereum spot exchange-traded fund (ETF) later in the summer.
However, speculation around the approval of an Ethereum spot ETF is creating a buzz, with traders eyeing the approval of Form S-1 which could bring more action to the Ethereum market.
Ethereum’s implied volatility currently stands at a 10-volume premium to Bitcoin, which QCP analysts expect to reduce as the market begins to price in the expected approval of spot ETFs in the United States. United.
This suggests that although the summer could be quieter, critical developments could still arise that could influence market dynamics in the latter part of the season.
Bitcoin and ETH Market Performance and Sentiments
Considering recent market performance, Bitcoin and Ethereum have shown notable declines. After a bullish phase spurred by the US SEC’s approval of Ethereum spot ETFs last month, cryptocurrencies have closely mirrored each other during market downturns.
Over the past week, Ethereum has seen a significant decline of 8.5%, with a 1.4% decline in the last 24 hours alone. Likewise, Bitcoin saw a 1.4% decline today, continuing a week-long downtrend that brought its price back below $66,000.
In light of these fluctuations, Bitcoin maximalist Samson Mow has made some intriguing predictions about potential market movements. According to Mow, the likelihood of Bitcoin seeing a significant price rise – or what he calls an “Omega Candle” – increases as market pressure intensifies.
THE #Bitcoin the coil is super compressed now. The longer we go without a Godzilla Candle, the more likely we are to get an Omega.
Featured image created with DALL-E, chart from TradingView