Bitcoin options traders have shifted their primary bullish focus from $80,000 to $70,000, signaling a lower price ceiling for the cryptocurrency amid current market hedging dynamics and dealer activity.
Key Points
- Bitcoin call options at the $70,000 strike price now hold $1.63 billion in open interest, replacing the $80,000 level as the most popular bullish bet.
- The $60,000 put option remains the most sought-after downside contract, effectively establishing a potential price floor for the asset.
- Dealers currently hold a net long gamma exposure above $70,000, which forces them to sell into price strength to maintain a hedged, market-neutral position.
- This dealer hedging activity acts as a mechanical brake on Bitcoin's upward momentum, potentially limiting rapid price appreciation compared to other assets like ether.
- Bitcoin was recently trading near $64,100, reflecting a slight decline alongside broader losses in major cryptocurrencies and Nasdaq 100 index futures.