Altcoins were under pressure due to Bitcoin, which was traded in a narrow range at $ 56,000 during the week. Technical analysis shows that Bitcoin's decline will be capped at the $53,000 support, which could keep buyers active until the $60,000 resistance.
Trade volume was expected to drop over the next few days, over the US Thanksgiving holiday. Still, some analysts expressed that they expect volatility to increase in the Bitcoin and Ethereum options market throughout November.
The increased volatility could lead to sharp price movements over the next few days, which could discourage buyers from holding long positions.
Some analysts are expecting an increase in Bitcoin and Ethereum options markets volatility, which means that sharp price movements could occur in the next few days. Bitcoin's daily volatility has declined since May and could be adjusted for a short-term increase from relatively lows.
Crypto asset manager Two Prime said in a report earlier this week;
“Unlike traditional stock markets, where price volatility is usually down, Bitcoin can show significant price volatility in both directions due to leveraged continuous futures trading.”
Similar to Bitcoin, Ethereum's volatility has also trended lower despite larger fluctuations. This is probably because there is more speculative interest in the ETH options market than BTC.
According to Two Prime's statement;
“When implied volatility (options market expectations of future volatility) is significantly higher than realized volatility (actual price fluctuation in past trading ranges), as expressed in the chart above, an increase in the latter often yields exponential returns on corner and long volatility options”
“The market as a whole will stay on target in the short term,” Pankaj Balani, CEO of crypto derivatives trading platform Delta Exchange, wrote in an email to CoinDesk. said. Balani expressed the following;
“We should expect downward pressure and higher volatility on all risky assets, including BTC, but the $1 trillion market cap should remain a good support for BTC in the short term.”