As summer approaches, Bitcoin (BTC) and Ethereum (ETH) traders are proactively strengthening their positions amid expectations of bullish trends. According to reports, many are employing an options strategy known as the 25-delta risk reversal, which entails buying put options while selling call options, or vice versa.
Key Points:
- Traders are implementing options strategies to protect against possible declines in prices for both Bitcoin and Ethereum during the summer.
- Risk reversals show a clear preference for downside protection as put options become costlier than calls for both cryptocurrencies.
- Despite recent fluctuations, some analysts forecast that Bitcoin might hit new peaks by the close of Q3.
Currently, risk reversals in Bitcoin options are negative, indicating that investors are preparing for potential volatility. Data indicates a preference for puts over calls, which provides a hedge against falling prices.
According to Singapore-based QCP Capital, the trend continues to highlight that long holders are strategically hedging their exposure in the spot market, preparing for drawdowns.
Traders counteracting risks typically buy puts in efforts to safeguard their positions against possible downturns. This was observed on the Paradigm platform, showcasing bearish risk reversals and several strategic trades targeted at downside positions.
Recently, Bitcoin has exhibited sideways trading patterns, with prices hovering around $100,000. Analysts suggest that profit-taking actions from long-term holders have countered bullish movements, causing price stagnation. Some market watchers anticipate that with strong buying pressures, Bitcoin could potentially surge to $130,000 or $135,000 towards the end of the third quarter.
