TechFlow news, May 27 — Matrixport released a chart analysis today stating, "Bitcoin's options skew (the difference between implied volatility of put and call options) has dropped to nearly -10%. This means the implied volatility of call options is 10% higher than that of put options, suggesting traders are currently more focused on chasing upside potential rather than hedging downside risks.
Based on our experience, when options skew reaches such levels, it typically indicates market sentiment has become extremely optimistic. Such extreme sentiment often acts as a contrarian signal, potentially foreshadowing a near-term stall or pullback in price action. As mentioned in our report yesterday, although we have maintained a bullish outlook continuously since mid-April, the current stage may be an appropriate time to gradually manage risk exposure. Trading is fundamentally about balancing risk and return. Amid broadly bullish market sentiment, we believe exercising patience and waiting for more attractive entry points may be a more prudent approach."
