QCP Capital's latest report highlights a notable decrease in trading volatility, particularly evident in Bitcoin's options data, signaling a potentially subdued summer for cryptocurrency markets.
Known for their adept trend-spotting, the firm observes chart patterns indicating a period of muted trading activity ahead, reflecting the market's current recovery phase from recent highs and lows, leaving traders in a state of uncertainty about future moves.
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Contrarily, Ethereum's options market displays significantly higher implied volatility compared to Bitcoin, hinting at the possibility of Ethereum witnessing more active trading amidst an otherwise quieter market environment.
According to QCP Capital's advice in their report, traders should consider accumulating Ethereum in anticipation of what they term as "the long, quiet summer." This strategy could prove advantageous amid expected low volatility conditions.
Moreover, while QCP Capital anticipates little price movement for Ethereum in July, attention is keenly focused on the potential approval of a spot Ethereum Exchange-traded fund (ETF) later in the summer, which could inject fresh dynamics into Ethereum's market.
The speculation surrounding this ETF approval is generating buzz, with market participants closely monitoring developments such as the anticipated approval of the S-1 Form for Ethereum.
Currently, Ethereum's implied volatility maintains a premium of 10 points over Bitcoin, a differential expected to narrow as the market factors in potential approval of the US spot ETF.
This dual outlook suggests a quieter summer overall, punctuated by pivotal events that could reshape market sentiment in the latter part of the season.
Market Performance and Sentiment for Bitcoin & ETH
Reflecting on recent market trends, both Bitcoin and Ethereum have seen notable declines. Following a bullish phase triggered by the US SEC's endorsement of spot Ethereum ETFs last month, both cryptocurrencies have closely mirrored each other in recent downturns.
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Over the past week, Ethereum has experienced a significant 8.5% decline, including a 1.4% drop in the last 24 hours. Similarly, Bitcoin has shown a 1.4% decrease today, extending a week-long downtrend that has brought its price below $66,000.
BTC price is currently stabilizing on the 4-hour chart. Source: BTC/USDT on TradingView.com
In response to these fluctuations, Bitcoin proponent Samson Mow has offered intriguing forecasts regarding potential market movements. Mow suggests that the likelihood of Bitcoin witnessing a substantial price surge—or what he terms an "Omega candle"—is growing as market pressures intensify.
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