The market of Bitcoin and Ethereum followed the Bearish sentiment of the equities market, as the week started. Bitcoin prices fell below $40,000 and Ethereum prices fell below $3,000.
Singapore-based crypto fund wrote in its telegram post that the markets were able to bounce because of the number of strikes that occurred for both Bitcoin and Ethereum around $40,000 and 3,000 mark, held by whales.
According to the fund, “there was a counterparty, which was purchasing a huge amount of downside risk reversals (where put is bought and a call is sold by the trader) who suddenly changed its positions to make profit (put is sold and call is bought)”.
Spot support was created at the $40,000 mark and $3,000 mark, because of the volume of delta trading at these marks.
The fund also explained the reason why Bitcoin is facing resistance at the $44,000 market, fund revealed that a whale is taking profit on his $42,000 calls made in January, as BTC started to rise to $44,000.
Disclaimer: The article is meant for the educational purpose only and in no way it should be considered as financial advice. Own research on the topic is advisable.
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