Bitcoin options market structure leans toward $60K retest in February

💡 DMK Insight

Bitcoin’s struggle to break $70,000 is more than just a psychological barrier—it’s a signal of underlying bearish sentiment. With BTC currently at $66,979, the deployment of bearish options strategies suggests that traders are anticipating further downside. This could lead to increased selling pressure, especially if we see significant outflows from spot BTC ETFs, which often indicate a lack of confidence in the asset’s near-term performance. If these outflows continue, a retest of the yearly low becomes more likely, which could trigger stop-loss orders and exacerbate the decline. Look for key support levels around $65,000; a break below this could open the floodgates for further declines. On the flip side, if Bitcoin can reclaim the $70,000 mark, it might signal a shift in sentiment, but that seems unlikely given the current bearish options activity. Keep an eye on the volume of ETF outflows and any shifts in open interest for options, as these will provide insight into market sentiment and potential price movements.