Medium-term far out the money option flows foreshadowing bitcoin sell-offs?
Before both crashes on May 19th and December 4th, the 6-month 25D Skew flipped from negative to positive. This suggests that signals from medium-term options could be a useful directional indicator in the future.
Source: Skew, Tradingview
The 25-delta skew shows the difference between the implied volatility for put and call options at the same maturity. A positive skew signals a higher demand for put options than call options. When the skew is negative, the demand for call options is higher than for put options.