Bitcoin Traders Brace for Impact: QCP Capital Signals Incoming Price Drop—Here’s Why

Samuel Edyme

11 months ago

3 mins read

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Recent analysis from QCP Capital indicates a marked shift in derivatives market sentiment, signaling that options traders are bracing for further declines in Bitcoin value.

Dissecting the Bearish Sentiment

The derivatives market has experienced a notable shift over the past day, with the implied volatility in Bitcoin options decreasing.

This indicates that traders are worrying more about the possible downside risks. According to a note from analysts at QCP Capital, the spread between call and put options has tightened by three volatility points. QCP Capital noted:

While spot prices remain muted, the options market is painting a different picture. 26 Jul vols made an impressive 8-vol rally with RR dipping by 3 vols signalling caution to the downside.

This contraction reflects growing market caution as traders prepare for possible Bitcoin price declines amid increasing sell-pressure. Notably, the US government moving Bitcoin to exchanges like Coinbase and MtGox creditors beginning to receive their redistributed assets via Kraken, are contributing factors.

These movements have injected substantial Bitcoin into the market, potentially suppressing prices further. QCP Capital’s analysts added:

With the ETH Spot ETF potentially not impacting prices on the outset, coupled with potential selling pressure from the US Government and Mt Gox, prices may remain subdued until momentum builds up leading to the elections.

The Positive Bitcoin Signal

Amid the bearish sentiment from the derivative market shared by QCP Capital, some other Bitcoin metric suggest quite an opposite sentiment—Bullish.

According to a CryptoQuant author on the QuickTake platform, there has been a significant increase in Bitcoin withdrawals from Kraken.

This is particularly noteworthy as it comes at a time when Mt.Gox creditors are receiving their funds from the Kraken exchange. The analyst noted:

This could be a positive signal, indicating that they are not selling and are preparing to hold their coins, moving them from the exchange to cold wallets. Although the volume is not high, over 5K $BTC (USD 329.192.018$) have been withdrawn in the last 24 hours.

Meanwhile, regardless of the mixed signals from both QCP Capital and the CryptoQuant analyst, BTC itself is still maintaining a crucial mark price above $66,000.

Although the asset briefly traded at $67,073 earlier today, Bitcoin has now retraced slightly, trading for $66,705 at the time of writing.

Bitcoin (BTC) price chart TradingView — BTC price is moving upwards on the 2-hour chart. Source: BTC/USDT on TradingView.com

According to prominent crypto analyst RektCapital, so far, not only has BTC successfully retested the old all-time high (ATH) major resistance area, but the asset now has a chance to “form a new Higher High for the first time in months.”

#BTC

Not only has the retest been successful…

But Bitcoin also has a chance to form a new Higher High for the first time in months$BTC #Crypto #Bitcoin https://t.co/2sMk2eekFN pic.twitter.com/wHubSs1a9Q

— Rekt Capital (@rektcapital) July 22, 2024

Featured image created with DALL-E, Chart from TradingView

Samuel Edyme

Meet Samuel Edyme, Nickname - HIM-buktu. A web3 content writer, journalist, and aspiring trader, Edyme is as versatile as they come. With a knack for words and a nose for trends, he has penned pieces for numerous industry player, including AMBCrypto, Blockchain.News, and Blockchain Reporter, among others.

Edyme’s foray into the crypto universe is nothing short of cinematic. His journey began not with a triumphant investment, but with a scam. Yes, a Ponzi scheme that used crypto as payment roped him in. Rather than retreating, he emerged wiser and more determined, channeling his experience into over three years of insightful market analysis.

Before becoming the voice of reason in the crypto space, Edyme was the quintessential crypto degen. He aped into anything that promised a quick buck, anything ape-able, learning the ropes the hard way. These hands-on experience through major market events—like the Terra Luna crash, the wave of bankruptcies in crypto firms, the notorious FTX collapse, and even CZ’s arrest—has honed his keen sense of market dynamics.

When he isn’t crafting engaging crypto content, you’ll find Edyme backtesting charts, studying both forex and synthetic indices. His dedication to mastering the art of trading is as relentless as his pursuit of the next big story. Away from his screens, he can be found in the gym, airpods in, working out and listening to his favorite artist, NF. Or maybe he’s catching some Z’s or scrolling through Elon Musk’s very own X platform—(oops, another screen activity, my bad…)

Well, being an introvert, Edyme thrives in the digital realm, preferring online interaction over offline encounters—(don’t judge, that’s just how he is built). His determination is quite unwavering to be honest, and he embodies the philosophy of continuous improvement, or “kaizen,” striving to be 1% better every day. His mantras, “God knows best” and “Everything is still on track,” reflect his resilient outlook and how he lives his life.

In a nutshell, Samuel Edyme was born efficient, driven by ambition, and perhaps a touch fierce. He’s neither artistic nor unrealistic, and certainly not chauvinistic. Think of him as Bruce Willis in a train wreck—unflappable. Edyme is like trading in your car for a jet—bold. He’s the guy who’d ask his boss for a pay cut just to prove a point—(uhhh…). He is like watching your kid take his first steps. Imagine Bill Gates struggling with rent—okay, maybe that’s a stretch, but you get the idea, yeah. Unbelievable? Yes. Inconceivable? Perhaps.

Edyme sees himself as a fairly reasonable guy, albeit a bit stubborn. Normal to you is not to him. He is not the one to take the easy road, and why would he? That’s just not the way he roll. He has these favorite lyrics from NF’s “Clouds” that resonate deeply with him: “What you think's probably unfeasible, I've done already a hundredfold.”

PS—Edyme is HIM. HIM-buktu. Him-mulation. Him-Kardashian. Himon and Pumba. He even had his DNA tested, and guess what? He’s 100% Him-alayan. Screw it, he ate the opp.

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