The broader crypto market faced a strong sell-off on Thursday as it turned out to be an absolute Halloween event for investors. The BTC price has crashed 4.11% and is currently trading at $69,320 levels as the Bitcoin options data shows a tough fight between the bulls and the bears. A similar correction is visible in the altcoins space with Ethereum (ETH), Solana (SOL), Dogecoin (DOGE), and Cardano (ADA) correcting by 5-7% each.
Crypto Market Crash: Bitcoin and Altcoins Bleed Heavily
On Halloween Eve, Bitcoin (BTC) and the broader crypto market are facing strong bearish sentiment. Popular crypto analyst IncomeSharks noted that we could probably see a BTC price dip to $66,000 while still maintaining a bullish outlook on the daily chart. The analyst also believes that the lowest dip would be to $68,000 before finding the new support. Also, the Bitcoin active addresses have dropped 25% signaling reduced activity for the asset class.
#Bitcoin – We could drop to $66k and still be bullish on the daily. I think lowest this goes is about $68k before establishing the next support. Only accounts that will be celebrating this move have been bearish and wrong for months. pic.twitter.com/XqjPVS9SPX
— IncomeSharks (@IncomeSharks) October 31, 2024
Another popular crypto analyst Benjamin Cowen believes that it is too early to celebrate the current move of BTC above $72,000. As the BTC price is close to below $70,000 for the month of October, he added that the monetary policy will weigh in once again. He said:
“Labor market data is tomorrow. Should be the deciding factor for cyclical view vs. monetary policy view of BTC for rest of Q4.I think it should be apparent by the weekly close which is the most likely outcome”.
He also added that the crypto market is struggling to break through the downward-sloping channel while the ALT/BTC pair tanks even lower. Cowen remains firm on his previous prediction adding that if this is the beginning of a larger correction, the BTC dominance can continue to surge past 60% moving ahead.
Bitcoin Options Signals Tough Fight Between Bulls and Bears
As of Friday, a total of 28,000 Bitcoin options, worth nearly $2 billion, are set to expire with a put-call ratio of 0.92 and a max pain point of $69,000, as per Deribit data. The put-call ratio near 1 shows that the bulls and bears are engaged in a tough fight between the bulls and bears and intensifying trading activity.
With the U.S. election as a major market driver, Bitcoin’s implied volatility for at-the-money options on November 8 now stands at nearly 70%. Furthermore, the BTC price oscillations near record levels are creating robust trading opportunities across market perspectives.
Altcoins Face Even Steeper Correction
The correction in the altcoin space is even steeper as the Ethereum (ETH) price tanks over 5% taking a dip under $2,500 earlier today. Later today, 137,000 ETH options are expiring with a notional value of $350 million, a put-call ratio of 0.69, and a max pain point of $2,550.
On the other hand, Solana (SOL) has also struggled to keep up with its recent rally facing rejection at $175. The SOL price is down 6% today trading at $167 levels at press time. However, market analysts continue to remain bullish with rising calls for Solana’s all-time highs.
Bhushan Akolkar
Bhushan is a FinTech enthusiast with a keen understanding of financial markets. His interest in economics and finance has led him to focus on emerging Blockchain technology and cryptocurrency markets. He is committed to continuous learning and stays motivated by sharing the knowledge he acquires. In his free time, Bhushan enjoys reading thriller fiction novels and occasionally explores his culinary skills.
Disclaimer: The presented content may include the personal opinion of the author and is subject to market condition. Do your market research before investing in cryptocurrencies. The author or the publication does not hold any responsibility for your personal financial loss.
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