Bitcoin remains rangebound in the high $30,000 to low $40,000 areas.
Federal Reserve hinting at an aggressive monetary policy, there are expectations of Bitcoin and Ethereum revisiting critical support at $30,000 and $2,500, respectively.
In the options markets, traders are preparing for a potential drop as QCP Capital records a “massive selling of May and June calls, causing BTC and ETH risk reversal”.
In other words, traders seem to be hedging for the upcoming crash by buying put options.
Bitcoin’s recent price action characterized by low volatility could also be the result of the popularization of algorithmic stablecoins, QCP Capital believes.
We mentioned in a previous post that the precedent set by Luna Foundation Guard .
If the entities managing these stablecoins buy BTC or ETH to maintain the pegged of their assets, there is a chance that a de-pegged scenario could increase the selling pressure in the market.
In any case, QCP Capital and others wonder about the long-term sustainability of the algorithmic stablecoins.
In the meantime, as expectations of a May/June crash increase and algo stablecoins proliferate, Bitcoin seems poised to remain rangebound with short-term price action to the downside.
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