Bitfinex Says Bitcoin Prices May Have Bottomed and Are Starting to Stabilize

Derivatives market indicators suggest bitcoin prices are stabilizing after intense price fluctuations over the past seven days, analysts said.

Last Wednesday, the price of bitcoin fell below its 120-day range, hitting a local low of $53,219, as the market reacted to sell-off fears from both the German government and Mt Gox creditors.

Since then, the largest digital asset by market capitalization has once again surpassed the $57,000 mark, but not without an increase in daily price volatility.

However, according to Bitfinex analysts, derivatives market indicators show that the price of bitcoin could be stabilizing and that the asset could have hit a local bottom. “Derivatives market data suggests a bottom has been reached locally for bitcoin,” Bitfinex analysts told The Block.

Analysts at Bitfinex said that price fluctuations have begun to slow as “the spread between implied and historical volatility has narrowed by almost 90%, suggesting that traders expect Bitcoin prices to remain at a range and stabilize.

Analysts noted that while open interest in options indicates a lack of conviction in either direction (short-term short positions were eliminated by the slight rally in prices on Tuesday), long-term holders continue to make profits.

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