Summary
- Vetle Lunde predicted that Bitcoin's low volatility and traders' risk aversion psychology won't persist.
- Current Bitcoin on-chain indicators have returned to levels seen during the U.S. election last November.
- With leverage levels at moderate levels, the risk of cascading liquidations is low, but he advised waiting until a clear direction emerges.
According to The Block, a cryptocurrency-focused media outlet, on the 18th (local time), K33 Research analyst Vetle Lunde predicted that while Bitcoin (BTC) maintains low volatility and traders' risk aversion psychology is strengthening, this situation won't last long.
He stated, "BTC on-chain indicators are showing weakness," adding that "BTC trading volume, returns, options premiums, and ETF flows have returned to levels seen before the U.S. election last November."
He continued, "Along with this, BTC volatility has plummeted to its lowest level in months," but emphasized that "this situation won't last long."
Furthermore, he analyzed that "the overall market's risk aversion psychology suggests traders are preparing for downside volatility," while noting that "leverage levels are moderate, indicating a lower risk of cascading liquidations."
Finally, he added, "As this is a period of high uncertainty, I recommend waiting until a clear direction emerges."
JH Kim
reporter1@bloomingbit.ioHi, I'm a Bloomingbit reporter, bringing you the latest cryptocurrency news.
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