Despite the mild statements from Fed Chair Jerome Powell, Bitcoin and altcoins experienced a sharp correction.
Bitcoin has fallen to around $110,000, dragging down the overall cryptocurrency market as forced liquidations, along with increased short-term volatility ahead of key U.S. economic data this week, have also weighed on the cryptocurrency market.
At this point, Bitcoin fell to a seven-week low due to strong downward market pressure from the liquidation of large leveraged positions, while Ethereum fell to $4,300.
Speaking to The Block, Deribit head of research Sean Dawson said it had been a bloody start to the new week.
At this point, the analyst argued that BTC is likely to retest $100,000 by the end of September, while ETH is likely to retest $4,000.
According to Dawson, the recent correction has caused an increase in volatility, with BTC’s daily implied volatility rising from 15% to 38% and ETH’s from 41% to 70%.
Dawson attributed the sudden surge in volatility to investors rushing to hedge ahead of the release of second-quarter US GDP and employment data.
Dawson also noted that the volatility in options markets reflects investors’ cautious approach.
Based on the data, the analyst noted that the 25-delta slope in the options market has turned negative for both assets, indicating increased demand for put options. This reflects a short-term bearish trend.
At this point, Dawson predicted that BTC is likely to retest $100,000 by the end of September, while ETH is likely to retest $4,000.
*This is not investment advice.
Source: https://en.bitcoinsistemi.com/analyst-reveals-bitcoin-and-ethereum-expectations-warns-these-levels-could-be-tested-again-by-the-end-of-september/
