Greeks.live researcher Adam said on Aug. 31 that the recent sharp rally has lifted market sentiment broadly, with gains not only in Bitcoin and other major tokens but also across multiple crypto sectors. Even so, he noted that as the pace of the advance slows, major participants in the options market have started to lower their expectations. According to his post, implied volatility for short- and medium-dated options has fallen quickly and is now up only 10% from two weeks ago, while longer-dated implied volatility has also dropped notably and is up less than 2% over the same period. Adam added that 40% of options are set to expire at the end of this month, with the $80,000 to $90,000 range holding the heaviest concentration of contracts. He also said Bitcoin is trading in a dense transaction zone, which could create added pressure if the price tries to break higher.
BlockBeats reported on Aug. 31 that Greeks.live researcher Adam said a rapid rise in prices has sharply improved market sentiment. Alongside gains in Bitcoin and other major cryptocurrencies, multiple sectors have also shown a clear recovery.
At the same time, as the rally begins to lose speed, leading participants in the options market have lowered their expectations. Adam said implied volatility for short- and medium-term options has retreated quickly and is now only 10% higher than it was two weeks ago. Longer-term implied volatility has also fallen markedly, with gains of less than 2% versus two weeks earlier, pointing to lower expectations for future volatility.
He added that 40% of options are due to expire at the end of this month, and that the heaviest concentration is in the $80,000 to $90,000 strike range. Bitcoin is also trading in a dense transaction zone, he said, which could mean added resistance if the price attempts to move higher.
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