Short-term investors should look away at the moment. Or look closely, depending on one’s appetite for fear. Bitcoin, and Ethereum registered their largest 1-hour correction candles over the past few hours. BTC dropped by 3.38% in the chart, and Ethereum witnessed a 5.58% slip.
However, the worst might not be over for both the top assets, as they might gearing up for a bumpy weekend. In this article, we will analyze the current catalysts that may have a large say in the short-term trading sessions.
Bitcoin, Ethereum Trading Options are shaping up for losses
According to data from Skew, Over 51.9k Bitcoin will enter contract expiry post 26 November. Similarly, for Ethereum, 297.8k ETH options are ending towards execution, and the major conundrum was common. Both Bitcoin and Ethereum options had a majority in call buys which means there will be a higher number of contracts undergoing losses.
With more than 50% of options reaching a state of losses, this may further weaken market sentimentality heading into the weekend. The options market will not reach a state of re-test until Monday, and bearish unpredictability could force prices even lower.
Looking at the daily chart for Bitcoin, a fractal is currently forming which is not necessarily bullish. As highlighted earlier, Bitcoin will maintain a bullish structure until it remains above the $53,000 mark in the charts. Hence, over the weekend, the price of Bitcoin may dip below or around the aforementioned range.
With Ethereum, the re-test zone might be a little lower than its current level. At press time, the daily chart of ETH is appearing to breach under its ascending channel. Corrections may lead to Ethereum dropping down to the $3600-$3700 range before recovering in the charts. However, such a massive drop during the weekend can only be speculated over, and it may unfold over the next week or so.