Options markets signal caution as Bitcoin steadies
Some analysts see early stabilisation after heavy selling, but recovery depends on Bitcoin holding key support levels.
Bitcoin traded sideways on Tuesday after a short-lived rebound from a 10-month low, as caution continued to dominate derivatives markets. Early Asian trading saw limited movement, with prices hovering below $78,500 following a sharp sell-off the previous day.
Options positioning suggests nerves have yet to ease fully. Data from Deribit showed heavy put option concentrations around $75,000, marking a key support level, while the next downside area is seen closer to $70,000.
Although downside protection demand has softened, positioning indicates traders remain defensive.
Signals from perpetual futures markets reinforced the cautious tone. According to CryptoQuant, funding rates turned negative, their weakest since mid-2024, pointing to a market dominated by short sellers.
Implied volatility stayed elevated near 48.8, based on data from TradingView.
Some traders highlighted early signs of stabilisation after aggressive selling. Analysts at FalconX and STS Digital noted that a weekly close below $75,000 could reignite downside pressure, while holding above that level may support a near-term recovery.
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