QCP Capital: ETH risk reversal, bearish bias accurately predicts decline, BTC may have difficulty breaking through the $64,000 to $73,000 range

According to BlockBeats, crypto market maker QCP Capital noted in its latest market report that the bearish skew in ETH risk reversals they highlighted on Friday has proven to be an accurate early indicator of downside. QCP believes that the reason for this phenomenon may be that speculators holding long altcoin positions will buy ETH put options to hedge, resulting in ETH options being more sensitive to changes in crypto market sentiment.

Overnight, news that Iran was threatening retaliation against Israel triggered a global sell-off in risk assets. BTC once fell to $65,100, ETH fell to $3,100, and altcoins generally fell by 20-30%. This change caught the market off guard, and the perpetual contract funding rate was once pushed to a negative range below -40%, the lowest level this year.

After this drop, BTC is back in the center of the tight range between $64,000 and $73,000. Although BTC is still about a week away from its halving, QCP predicts that it may be difficult to break through this range in the short term. QCP recommends that investors consider using CFCC products to cope with the current market situation.