Bitcoin remains below $40,000 for the third consecutive day and the most likely source of the volatility is the worsening condition of traditional markets.
Despite Bitcoin’s 4-day price 10% correction to $38,200 on April 25, most holders choose to stay hands-off, as confirmed by on-chain data from Glassnode.
To understand whether the market has flipped bearish, traders must look at the Bitcoin futures’ premium .
Yet, as displayed above, Bitcoin’s basis moved below such a threshold on April 6 and is currently at 2%.
This metric will turn positive when fear prevails because the protective put options premium is higher than similar risk call options.
The metric shifted bearish on April 7 and has since kept above the threshold level.
Of course, none of the data can predict whether Bitcoin will continue to downtrend, but considering the current data, traders are overcharging for downside protection.