The 38th week of the year is historically the third worst that appears week for Bitcoin, on average a return of -2.25%. Only week 28 (-2.78%) and week 14 (-3.91%) has been weaker historical, according to Coinglass data.
This week, Bitcoin is already down to nearly 2%trading with about $ 113,000, with September’s monthly options expiring, pointing to a maximum pain level of $ 110,000, according to deribit, this may involve further downward.
Max Pain refers to the strike price where the largest number of options contracts (calls and sets) Expires worthless, which effectively maximizes loss for option buyers.
In addition, market enthusiasm has faded. Perpetual financing rates for Bitcoin, which measure the ongoing costs of keeping geared long or short positions in eternal futures contracts, have dropped to 4%, one of their lowest levels in a month.
A low positive degree of financing suggests reduced demand for geared long exposure, which often signalizes that speculative foam on the market has cooled.
While, hinted at volatility (IV)The market’s expectations for future price fluctuations reflect, are also close to historic low level of 37.
Despite the weekly dip, Bitcoin remains 4% higher in September and up 6% for the quarter. With about 14 weeks left in the year and most of these weeks that historically produce positive returns, this can represent calm before potential volatility.
Meanwhile, Gold has continued its impressive rally and climbed another 1% on Tuesday and now more than 42% higher years to date, which continues to take the sting out of Bitcoin.
Another factor weighing on Bitcoin mood (Iren)Which may have taken some shine away from Bitcoin in the short term.
