The crypto market is bouncing back after one of its most turbulent weekends ever, with major digital assets recovering ground lost during the sudden liquidation wave that erased roughly $20 billion from open positions.
Still, Timothy Misir, head of research at BRN, explained to CryptoSlate that the market rebound reflects a blend of short-covering and selective accumulation.
According to him:
“Large holders are buying opportunistically while many retail players remain sidelined. That said, the market’s structural health still hinges on steady spot demand, ETFs, treasuries and corporate purchases and time for liquidity to normalize. A V-shaped recovery is possible; a durable rally requires repeated absorption of selling at progressively higher prices.”
According to him, this signals an expectation of a volatile few weeks ahead, because the recent sell-off disrupted normal volatility patterns, and traders have begun hedging aggressively.
As a result, Forster noted that some investors are beginning to bear the thought that Bitcoin could drop below $100,000 while ETH traders are more bearish, with “substantial buying of $2,600 puts for December.”
He said:
“In BTC options, we saw heavy buying of $115,000 and $95,000 puts for the October 31 expiry, alongside a sharp reversal from call buying to call selling at the $125,000 strike (October 17 expiry), signaling a bearish near-term outlook…For ETH, traders focused on the October 31 $4,000 and October 17 $3,6000 strikes, while substantial buying of $2,600 puts for December 26 expiry reflected growing bearish sentiment through year-end.”
