Matrixport: Bitcoin market sentiment is "extremely optimistic", beware of a short-term pullback!

Bitcoin options data shows that the market is extremely optimistic, and Matrixport refers to this as a historical contrarian indicator, or a short-term pullback. Although institutional demand supports the long-term, short-term risks need to be vigilant. Financial Times: Trump Media Group is raising $3 billion to buy bitcoin, following micro-strategies? Official refutation) (background added: Have long-term Bitcoin holders started shipping? Bitcoin options market data reveals that traders' optimism about the outlook for bitcoin has been pushed to extreme levels. Research institute Matrixport pointed out that such one-sided bullish expectations have historically indicated that the market may stagnate or retrace in the short term. Options Data: Extreme Bullish According to the latest Matrixport post, Bitcoin's option skewness (options skew) has fallen to nearly 10%. This data means that the implied volatility of the call option is 10 percentage points higher than that of the put option, indicating that market participants are actively chasing upside potential while relatively ignoring the hedging of downside risk. In addition, the negative 25 Delta Skew indicator recently recorded -6% to -6.1%, further confirming the market's current risk appetite. Matrixport emphasizes that its experience shows that when option skewness reaches such extreme levels, it is often a sign that market sentiment is overheating. Today’s #Matrixport Daily Chart – May 27 2025 Traders Are All-In on Bitcoin Upside—Is It Time to Step Back? #Matrixport #Bitcoin #BTC #BitcoinMomentum #MarketTrends #BTCPrice #CryptoTrading #CryptoResearch pic.twitter.com/KJMZ3NIcCP — Matrixport Official (@Matrixport_EN) May 27, 2025 Market Impact and Aftermarket Watch This extreme optimism may signal short-term correction pressure. Bitcoin's recent retreat to around $108,000 after hitting an all-time high of $111,880 has failed to effectively hold above the $110,000 resistance level, indicating signs of weakening upward momentum. At the same time, the market is relatively focused on the key resistance in the $103,000 to $104,000 range, which may trigger some profit-taking selling pressure. While institutional demand supports Bitcoin's long-term outlook, such as the BlackRock Bitcoin ETF, which has been exposed to $20 billion, investors may need to be patient in the short term to find a better time to enter BTC due to the current high level of market sentiment. Related reports Bitlayer reaches strategic cooperation with three major bitcoin mining pools to promote the landing of BitVM Bridge Pakistan announces that 2,000 megawatts of electricity will be used for "Bitcoin Mining and AI Center" Prime Minister appoints special assistant for blockchain and cryptocurrency Trump suspends "50% tariff on the EU" extended to 7/9, U.S. stocks and bitcoin rebounded 109,000 magnesium 〈Matrixport: Bitcoin market sentiment is "extremely optimistic", beware of short-term pullbacks! This article was first published in BlockTempo's "Dynamic Trend - The Most Influential Blockchain News Media".