Bitcoin (BTC) Still on a Knife Edge! Options Bulls Are Now Waiting for This Level!

The leading cryptocurrency, Bitcoin (BTC), has fallen to $60,000, continuing its downward trend that has lasted since October.

While there is no consensus in the market regarding the direction of Bitcoin, some analysts suggest the price could fall further, while others claim that $60,000 could be the bottom.

As volatility in BTC movements continues, options traders have begun to hedge against further declines.

At this point, according to Deribit data, the nominal value of the $40,000 put options expiring on February 27th has reached approximately $490 million. The $40,000 put option is the second largest option in terms of the number of open positions.

This indicates that investor demand for downside protection is increasing.

According to Deribit data, these options will expire on February 27th. Additionally, Bitcoin options with a total nominal value of $7.3 billion will expire by the end of the month, with $566 million concentrated at the current “maximum pain” level, defined as the strike price of $75,000.

Although the number of call options still exceeds that of put options (63,547 call option contracts compared to 45,914 put option contracts), the significant put position at a low strike price of $40,000, with an open interest rate of 0.72, indicates substantial demand for downside hedging in the market.

This situation highlights investors’ desire to protect themselves against further price declines while maintaining expectations for potential upward recoveries.

*This is not investment advice.

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