Back Below $60,000? Bitcoin Options Market Signals Major Downside Risk

▲ Bitcoin (BTC) / ChatGPT-generated image

Bearish bets in the Bitcoin (BTC) options market are surging, fueling concerns that the price could be pushed down to the $60,000 support level.

The structure of the Bitcoin options market is being reshaped in a way that signals a potential downturn ahead of the contract expiry at the end of this month. As investors increase purchases of put options to hedge against price declines, analysts say the likelihood of retesting the previously recorded $60,000 level has grown. With overall market sentiment tilting toward risk aversion, bullish participants are losing ground.

The put-to-call ratio, a key indicator in the derivatives market, has surged in recent days, reflecting growing investor anxiety. Significant open interest has accumulated around the $60,000 and $58,000 levels, leaving the door open for a correction toward those price ranges. Analysts warn that unless strong buying pressure emerges, volatility could intensify in conjunction with the options expiry.

Technical indicators also point to weakness. The relative strength index has retreated from overbought territory and turned downward, while the moving average convergence divergence indicator is flashing negative signals. Repeated failures to break above the $70,000 resistance level have triggered waves of selling, further deteriorating market structure. As retail investors adopt a wait-and-see approach, institutional investors are strengthening hedging strategies, adding to downward pressure.

The broader macroeconomic environment is also unfavorable for Bitcoin. Persistent inflation concerns and the Federal Reserve’s hawkish stance have tightened liquidity, reinforcing pessimism in the options market. Investors are focusing on portfolio protection amid fears of large-scale liquidations if prices fall further. With little sign of upward momentum for now, defending key support levels has become the market’s top priority.

This bearish structure in the Bitcoin options market is interpreted as a strong indicator of short-term price correction. If the $60,000 support level collapses, investor sentiment could deteriorate rapidly, potentially leading to further downside. Market participants are closely monitoring capital flows ahead of the upcoming options expiry and watching whether key price levels can hold.

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