Analyst Reveals Bitcoin and Ethereum Expectations, Warns: “These Levels Could Be Tested Again by the End of September!”

Despite the mild statements from Fed Chair Jerome Powell, Bitcoin and altcoins experienced a sharp correction.

Bitcoin has fallen to around $110,000, dragging down the overall cryptocurrency market as forced liquidations, along with increased short-term volatility ahead of key U.S. economic data this week, have also weighed on the cryptocurrency market.

At this point, Bitcoin fell to a seven-week low due to strong downward market pressure from the liquidation of large leveraged positions, while Ethereum fell to $4,300.

Speaking to The Block, Deribit head of research Sean Dawson said it had been a bloody start to the new week.

At this point, the analyst argued that BTC is likely to retest $100,000 by the end of September, while ETH is likely to retest $4,000.

According to Dawson, the recent correction has caused an increase in volatility, with BTC’s daily implied volatility rising from 15% to 38% and ETH’s from 41% to 70%.

Dawson attributed the sudden surge in volatility to investors rushing to hedge ahead of the release of second-quarter US GDP and employment data.

Dawson also noted that the volatility in options markets reflects investors’ cautious approach.

Based on the data, the analyst noted that the 25-delta slope in the options market has turned negative for both assets, indicating increased demand for put options. This reflects a short-term bearish trend.

At this point, Dawson predicted that BTC is likely to retest $100,000 by the end of September, while ETH is likely to retest $4,000.

“The data shows us that options traders prefer put options over call options.

This is the strongest downside protection demand we’ve seen in the last two weeks, with investors appearing to be preparing for a potential retest of the $4,000 levels for ETH and $100,000 for BTC by the end of September.

*This is not investment advice.