Arthur Hayes after forecasting the Bitcoin and Ethereum crash said he believes there is no point in analyzing charts after the red Monday
Arthur Hayes’s Prediction After “Red Monday”
Hayes, the founder of the infamous Bitmex derivatives exchange, who forecasted the Bitcoin and Ethereum crashes, has spoken out following the “red Monday” that hit both crypto and traditional markets, making it one of the worst days for traders and investors worldwide.
$20,000 for Bitcoin, $1000 for Ethereum
Hayes recommended looking at both listed and unlisted option flows, noting that most open interest is now sitting near $20,000 for Bitcoin and $1,000 for Ethereum, indicating that this is a critical support level in OI.
Hayes argues that there is a lot of volume on the OTC market that isn’t tracked by on-chain measurements and indicators, in addition to the stated entries.
Time to Sell Spot
The founder of 100x also advised people who shorted a put option to sell the spot to hedge the option’s delta due to the delta’s nonlinear increase as the strike price approaches.
In terms of market behavior, Hayes feels that the price levels of $20,000 for BTC and $1,000 for ETH are the most crucial at this moment since they protect the market from massive selling pressure.
As previously stated, if dealers’ put options approach the strike price, they will be forced to sell their spot holdings, putting pressure on the spot BTC asset. Traders of Ethereum are subject to the same rule.
Not Time for Charts but Prayers
Arthur also spoke out against technical research, claiming that charts can not provide any insight into current market moves. Instead, traders should pull out their Lord Satoshi prayerbooks and hope that the above-mentioned levels can withstand the tremendous selling pressure currently in place.