CORRECTED: Options Buying Indicates Bitcoin Market Isn't as Bearish as Before

...but BTC fails to break above $36K

Everything you need to make sense of the crypto markets and beyond By the CoinDesk Markets Team Edited by Lawrence Lewitinn, Managing Editor, Global Capital Markets July 1, 2021 Sponsored by     Bitcoin (BTC) -4.6%  $33,167 Ether (ETH)  -1.2%  $2,111 (Price data as of July 1 @11:00 UTC) If you were forwarded this newsletter and would like to receive it, sign up here.  Good morning, and welcome to First Mover. Due to an error, a previous version of this newsletter went out earlier. Here's what's happening this morning: Market Moves: Bitcoin's Sliding Put-Call Ratio Points to Weakening Bearish Sentiment: Analysts The last time the put-call ratio dropped to six-month lows was during the December-January bull run. Technician's Take: Bitcoin Declines from $36K Resistance; Could Find Support at $30K BTC starts July on a negative note, although buyers could return at $30K support. And check out the CoinDesk TV show "First Mover," hosted by Christine Lee, Emily Parker and me at 9:00 a.m. U.S. Eastern time. Today the show will feature guests: Oki Matsumoto, Monex Group CEO Darius Sit, QCP Capital Helen Hai, Binance NFT Lead  – Lawrence Lewitinn Biggest Movers These are the biggest movers in the CoinDesk 20 over the past 24 hours:   Gainers: Aave (AAVE): +3.0% Tezos (XTZ): +1.2% Yearn Finance (YFI): +0.6% Uniswap (UNI): +0.3%   Losers: The Graph (GRT): -6.5% Filecoin (FIL): -6.4% Chainlink (LINK): -5.1%   The CoinDesk 20 are 20 digital assets filtered from the larger universe of thousands of cryptocurrencies and constitute roughly 99% of the market by volume at eight of the largest and most trustworthy exchanges. Market Moves by Omkar Godbole Bitcoin's Sliding Put-Call Ratio Points to Weakening Bearish Sentiment: Analysts Bitcoin's put-call open interest ratio has slipped to six-month lows, indicating an ebbing of bearish sentiment.   According to data tracked by options analytics platform Skew, the ratio measuring the number of open positions, or open interest in put options relative to open interest in call options, fell to 0.60 on Wednesday, a level last seen in early January.   "The ratio has come down, indicating growing demand for call options, which could be interpreted as a positive signal, demonstrating a potential decline in overall bearish sentiment," Luuk Strijers, chief commercial officer at Deribit, the world's largest crypto-options exchange by open interest and trading volumes, told CoinDesk in a Telegram chat. Bitcoin's put-call open interest ratio (Source: Skew) The ratio slipped to a then six-month low of 0.45 in late December and remained mainly in the range of 0.50 to 0.70 in January as flows were concentrated on the call side. Bitcoin topped the long-held $20,000 resistance in December and rallied by 100% to nearly $60,000 in the first quarter of this year.   The put-call open interest ratio peaked at 0.94 in April and has been falling ever since.   "When the market was bullish in January, we could see a lot of flows buying calls at strikes 50% above bitcoin (BTC)'s going market price," Martin Cheung, an options trader from Pulsar Trading Capital, said in a Telegram chat.   Cheung said the ratio's slide from highs seen in April and May indicates the market has calmed down and digested most of the negative news flow.   That said, drawing conclusions from the put-call open interest ratio can be problematic, because the measure does not reveal whether the number of positions open is mainly on the bullish or bearish side.   For example, some market participants may have sold call options in recent weeks, adding to the tally of the number of open positions in calls – the ratio's denominator – and contributing to the downward pressure on the ratio. Savvy traders often sell call options, that is insurance against a bullish move, when they expect the market to consolidate or drop.   "You have to bear in mind that the put-call open interest ratio can give the wrong message," Deribit's Strijers said. "For example, users shorting upside calls contribute to open interest and volumes for calls; however, that is a bearish strategy."   Nevertheless, the recent decline in the put-call open interest ratio may have been fueled at least partly by a pick-up in demand for calls or unwinding of long put positions, that is unwinding of bearish bets.   While the put-call ratio is giving bullish hints, the options smile shows persistent concern of an extended sell-off and greater demand for puts or bearish bets at strikes lower than bitcoin's current market price.     Read the original story here: Bitcoin's Sliding Put-Call Ratio Points to Weakening Bearish Sentiment: Analysts A message from Nexo Your digital assets deserve a savings account in their BEST INTEREST. Leading crypto lender Nexo treats you, your crypto and your fiat to industry-best Crypto & Fiat services, featuring:    * Up to 12% interest on digital assets, paid out daily! * Yields available on BTC, ETH, LTC, BCH, XRP, XLM, EOS, TRX, LINK, BNB, PAXG, USDT, USDC, TUSD, PAX, DAI, HUSD, GBP and EUR. * No minimum or maximum limits on funds deposited, offering infinite opportunities to earn. * #ZeroFees on all transactions. * Military-grade wallet security and top-tier insurance on all custodial assets with SOC 2 Type 2 certified crypto custodian BitGo. Get started at nexo.io Technician's Take by Damanick Dantes, CMT Bitcoin Declines from $36K Resistance; Could Find Support at $30K Bitcoin (BTC) is under pressure after buyers took profits near $36,000 resistance on Tuesday. Lower support is seen around $30,000, which is the bottom of the month-long trading range.   The world's largest cryptocurrency is entering July on a negative note and is down about 4% over the past 24 hours. Bitcoin was trading around $33,000 at press time. Bitcoin four-hour price chart shows short-term support and resistance levels with RSI )Source: TradingView) The relative strength index (RSI) is not yet oversold on the four-hour chart, which means sellers could remain active towards lower support levels. Bitcoin failed to reverse a short-term downtrend over the past two weeks as resistance remains strong between $36,000 and $40,000. The 50-period moving average on the four-hour chart is stabilizing, although price is attempting to breakdown, keeping up with a series of lower highs over the past quarter. Bitcoin remains in a consolidation phase since June, although improving momentum could support a relief bounce if buyers defend $30,000 support.   Read the original story here: Bitcoin Declines from $36K Resistance; Could Find Support at $30K A message from Oasis Foundation   Get up to $50K to build your Oasis DApp Build a scalable, private DApp with Oasis, the leading privacy-first Blockchain, with built-in features to support confidential smart contracts. Check out the $1.5M USD Oasis Grants Program and get up to  $50K USD in ROSE token to build your project. APPLY NOW BOLO Be on the look out for some of these upcoming events:     12:30 UTC (8:30 a.m. ET): Initial jobless claims (Jun 26). Est: 390,000 The cryptocurrency movement has never been so sprawling, reaching every corner of the planet. Crypto State by CoinDesk aims to connect with local communities to explore this movement of financial disruption and how it trickles down to every corner of the globe, from DeFi investment opportunities to alternative ways to transact and store wealth. We're making virtual stops with audiences in Nigeria, the Middle East and Southeast Asia this year. Register for the Crypto State virtual tour. ICYMI In case you missed it, here are the most recent episodes of "First Mover" on CoinDesk TV:   Jeremy Allaire on Broad USDC Expansion, the Digital Dollar, El Salvador's Bitcoin Law and More The stablecoin $USDC dominates crypto headlines as the cryptocurrency developed by fintech company Circle gains wider global adoption. Circle CEO Jeremy Allaire joins "First Mover" to discuss the latest news involving $USDC, stablecoins in general, Coinbase, the digital dollar, bitcoin adoption and other related topics. Also, Chris Tyrer of Fidelity Digital Assets has updates Fidelity's crypto business and weighs in on the markets. Plus, Janine Yorio of Republic Realm helps to demystify the metaverse and NFTs. EIP 1559: Ethereum's Fee Market Upgrade Explained CoinDesk Research's newest report dives into the economic impacts and investment implications of Ethereum Improvement Proposal (EIP) 1559. At its core, the code change is designed to make transaction fees on Ethereum less volatile and more predictable.  At the same time, EIP 1559 also poses several risks to Ethereum including risks of miner capitulation or revolt, technological risk in the form of unexpected bugs, and risk of user disappointment. In this report, CoinDesk Research gives an overview of how EIP 1559 works and its intended impact for investors, miners and users. Download the full report today. Latest Headlines SBI Holdings Touts XRP Ledger for NFT Use in the Tokenization of a 'Variety of Assets' "The blockchain XRP Ledger has the ability to tokenize not only XRP but also a variety of other assets," the company said in its report. US Diplomat Voices Hope for Resolution in IMF, El Salvador Financing Tensions: Report Victoria Nuland, U.S. undersecretary for political affairs, met with President Nayib Bukele on Wednesday as part of her tour of the region. BaFin-Licensed DeFi Firm Swarm Starts Onboarding $15M of Pledged Liquidity Swarm Markets, which claims to be the world's first regulated DeFi protocol, says 250 customers have ponied up funds. Binance-Owned Indian Exchange Taps TRM Labs for Anti-Fraud Management WazirX says the partnership is a reinforcement of its commitment to detecting and preventing illicit activity. Circle Now Supports USDC Stablecoin on Tron Tron, which is currently the leading blockchain for Tether's USDT, is USDC's fifth network. South Africa to Accelerate Crypto Regulation in Wake of Scams: Report A regulatory structure should be in place in three to six months. Binance Deploys CipherTrace Tool for Travel Rule Compliance The announcement comes as Binance faces regulatory challenges from financial watchdogs in several markets. German Law Allowing $415B Investment Into Crypto Takes Effect The Fund Location Act introduced in April and approved by parliament shortly thereafter takes effect Thursday. SoftBank Invests $200M in Brazil Crypto Exchange Mercado Bitcoin The company contemplates acquisitions in Argentina, Chile, Colombia and Mexico. Bitfinex Halts Trading Amid 'Reduced Performances' The Hong Kong-based exchange said it is temporarily halting trading while investigating issues on the platform. Disclaimer: The information presented in this message is intended as a news item that provides a brief summary of various events and developments that affect, or that might in the future affect, the value of one or more of the cryptocurrencies described above. The information contained in this message, and any information liked through the items contained herein, is not intended to provide sufficient information to form the basis for an investment decision. The information presented herein is accurate only as of its date, and it was not prepared by a research analyst or other investment professional. You should seek additional information regarding the merits and risks of investing in any cryptocurrency before deciding to purchase or sell any such instruments.  ATTENTION: Scammers have been sending fraudulent emails with links to sites disguised to look like coindesk.com. If you are in doubt about a link, type https://www.coindesk.com directly into your browser; do not copy and paste. 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