Cryptocurrency Market Faces Bearish Trends Ahead of Triple Witching Event
The cryptocurrency market is experiencing increased volatility due to the imminent ’Triple Witching’ event, where multiple financial derivatives worth over $4.5 trillion are set to expire. This event historically causes significant price swings in both stocks and cryptocurrencies. Bitcoin has recently declined by 2.4% and is forming a rising wedge pattern, indicating a potential further drop to around $76,890. Ethereum shows a triple-top pattern, suggesting it could fall to $1,500. Meanwhile, XRP, with its head and shoulders pattern, may drop to $1. Experts are observing a growing demand for downside protection in Bitcoin options, as puts are trading at a premium over calls, indicating a risk-averse sentiment among traders. Indicators such as the CryptoQuant Bull Score and MYRIAD’s prediction market reflect a bearish outlook, with low optimism about Bitcoin’s ability to maintain higher price levels. The Fear and Greed Index is expected to remain low, suggesting cautious trader sentiment.
Bearish
The news indicates a potential bearish impact on the cryptocurrency market due to the expiration of significant financial derivatives during the ’Triple Witching’ event, known for inducing volatility. Technical patterns in Bitcoin, Ethereum, and XRP suggest potential further price declines, reinforced by risk-averse trading behavior and a low Fear and Greed Index. Historically, such events lead to increased market activity but with a tendency towards downward price pressure, aligning with a cautious sentiment in the market.