Crypto analysts have recently suggested that Bitcoin options traders are flipping short-term bearish but data shows this is not the case.
Bitcoin’s (BTC) consistent failure to break the $9,400 level over the past three weeks has led to some analysts becoming skeptical about the chance of a positive breakout.
Although the $9,000 support has been holding strong for the past 50 days, any slightly negative indicator tends to get more attention from media and pundits.
Recently, crypto media has focused on Bitcoin’s 25 % skew as proof that options traders are turning bearish in the short-term, but in reality there’s more to it than just interpreting signals from one data point.
Skew is an options-trading concept that compares the volatility rates between put and call options within the same expiration date.