Bitcoin options data says $18.5K is not a local top

Bitcoin options data says $18.5K is not a local top

Gate Trade News Thursday, November 19, 2020 56 0

Investors are afraid of a 2019-style 30% Bitcoin price drop, but options data suggest $18.5K is not the top.

 

Earlier today, Bitcoin (BTC) price peaked at $18,476 after an impressive 35% bull run that appears to have started in early September. 

 

This powerful movement was followed by a correction to $17,000, a natural pullback. This adjustment led some investors to question whether the current formation resembles the $13,850 top formed in July 2019.

 

Back then, a 30% drop followed a similar-sized rally, and afterwards it took Bitcoin 14 months to regain the $13,850 level. Coincidently, an intense flash crash happened right after that local high, but the price eventually recovered and stabilized near $12,800.