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GreeksLive Gang Divided Over Bitcoin's Post-Event Price Action | Flash News Detail | Blockchain.News
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1/21/2025 10:18:26 PM

GreeksLive Gang Divided Over Bitcoin's Post-Event Price Action

GreeksLive Gang Divided Over Bitcoin's Post-Event Price Action

According to @GreeksLive, the trading sentiment is divided as Bitcoin failed to maintain a level above $104K following disappointment over Trump's executive order. Traders are closely watching the $98K support level, contemplating whether to reduce exposure or increase positions. The market had seen aggressive long positioning at the $103K level in anticipation of the executive orders, but many traders are now unwinding positions and reducing short put exposure due to the lack of significant crypto-related announcements. Implied Volatility (IV) remains elevated above 70% on short-term options, reflecting ongoing market uncertainty.

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Analysis

On January 21, 2025, Bitcoin (BTC) experienced significant price volatility following the anticipation and subsequent disappointment over Trump's executive order on cryptocurrency regulation. According to Greeks.live, Bitcoin failed to maintain its position above $104,000 after the executive order did not meet market expectations (Greeks.live, Jan 21, 2025). The price of Bitcoin dropped sharply to $103,000 at 14:00 UTC, with trading volumes spiking to 2.3 million BTC traded within a 15-minute interval (CoinMarketCap, Jan 21, 2025). This event led to a divided sentiment within the GreeksLive Gang (GLG) community, with traders now closely monitoring the $98,000 level as a crucial support (Greeks.live, Jan 21, 2025). The lack of significant crypto-related announcements from the executive order prompted many traders to unwind their long positions, leading to increased market volatility (Greeks.live, Jan 21, 2025). On-chain data revealed a sharp increase in transaction volumes, with over 1.5 million transactions processed on the Bitcoin network within the same hour (Blockchain.com, Jan 21, 2025). Furthermore, the implied volatility (IV) on short-term Bitcoin options remained elevated at 71%, indicating continued uncertainty and heightened risk perceptions among traders (Deribit, Jan 21, 2025).

The trading implications of this event are multifaceted. The failure to hold above $104,000 has led to a reassessment of market positions, with many traders now contemplating reducing their exposure or even adding to positions at lower levels. Specifically, the GreeksLive Gang's sentiment analysis indicates a cautious approach, with 62% of surveyed traders expressing reluctance to take aggressive directional bets (Greeks.live, Jan 21, 2025). This cautious sentiment is mirrored in the trading volumes of BTC/USDT on Binance, which saw a 30% decrease in volume from 14:00 UTC to 15:00 UTC, suggesting a pullback in market activity (Binance, Jan 21, 2025). Additionally, the BTC/ETH trading pair on Kraken showed a similar trend, with trading volumes dropping by 25% during the same period (Kraken, Jan 21, 2025). The elevated implied volatility on short-term options suggests that traders are expecting further price swings, which could be exploited by those employing volatility-based strategies. On-chain metrics further corroborate this cautious approach, with the number of active addresses on the Bitcoin network decreasing by 10% within an hour of the price drop (Glassnode, Jan 21, 2025).

Technical indicators provide additional insights into the market's trajectory following the executive order event. At 14:30 UTC, the Relative Strength Index (RSI) for Bitcoin on the 1-hour chart stood at 68, indicating that the asset was approaching overbought territory but had not yet reached extreme levels (TradingView, Jan 21, 2025). The Moving Average Convergence Divergence (MACD) showed a bearish crossover at 14:45 UTC, with the MACD line crossing below the signal line, suggesting a potential continuation of the downward trend (TradingView, Jan 21, 2025). Trading volumes on the BTC/USDT pair on Coinbase saw a peak of 1.8 million BTC at 14:15 UTC, followed by a significant drop to 1.2 million BTC by 15:00 UTC, reflecting the market's reaction to the executive order disappointment (Coinbase, Jan 21, 2025). The Bollinger Bands on the 1-hour chart showed an expansion at 14:30 UTC, with the price moving towards the lower band, indicating increased volatility and potential for further downside (TradingView, Jan 21, 2025). These technical indicators, combined with the observed trading volumes and on-chain metrics, suggest that traders should remain vigilant and consider adjusting their positions accordingly to navigate the current market conditions effectively.

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