Bitcoin's Short-Term Outlook: Downside Bias with Limited Extreme Downside Risk

IconCryptoNewsTerminal Staff04 Jul, 2024

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Bitcoin's Short-Term Outlook: Downside Bias with Limited Extreme Downside Risk

Decentralized exchange D8X co-founder Basil M Meyer has recently provided insights into Bitcoin's short-term price outlook. According to Meyer, the downside bias remains, but extreme downside risk is unlikely. This analysis is based on the distribution of open interest in the July expiry Bitcoin options market, which shows a concentration around $60,000 with minimal open interest below $50,000. Meyer's analysis suggests that while a further decline in Bitcoin's price is possible, a sharp drop below $50,000 is less likely. This is due to the lack of significant open interest at those levels, indicating that there are fewer market participants expecting a significant decline. However, it's important to note that market conditions can change rapidly, and investors should always conduct their own research and exercise caution when making investment decisions.

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