Community Daily Digest

Published: 2025-05-01

Overall Market Sentiment

The group is predominantly bullish, with many traders expecting a push toward $100K based on low volatility and market structure. Key levels being watched include the $96.8K NPOC that was just hit and the $94.4K rolling VWAP, though some express concerns about "sell in May and go away" seasonality.

Low Volatility Environment - Opportunity for Long Positions

• $BTC 7-day volatility has hit a 563-day low, creating conditions for a potential volatility expansion
• Market makers are keeping volatility prices low to collect cheap gamma, with some allegedly selling calls at 30% implied volatility
• Leverage in the system is currently very low, suggesting room for upside as traders position for more rate cuts
• Some traders are considering July vol positions for vega pickup while algorithms are signaling aggressively long positions
• $ETH underperformance remains a concern with some suggesting to short it while focusing on $BTC's continued grind higher