Bitcoin rallies to $71.5K after historic sell-off, but derivatives metrics remain soft

💡 DMK Insight

Bitcoin’s recent jump above $71,000 is impressive, but pro traders are signaling caution. The options data indicates that many are hedging against a potential pullback, suggesting skepticism about whether this rally can hold. With BTC currently at $70,143, traders should keep an eye on key support levels around $68,000. If we see a drop below that, it could trigger more selling pressure. On the flip side, a sustained move above $72,000 could attract more bullish sentiment, potentially leading to a test of previous highs. It’s also worth noting that this cautious stance from professional traders could ripple into altcoins, especially those closely correlated with Bitcoin, like Ethereum. If Bitcoin falters, expect similar reactions across the board. In the short term, monitor the volume of options traded; a spike in put options could indicate rising fear among traders. The next few days are crucial—if Bitcoin can maintain its position above $71,000, it might shake off some of that bearish sentiment, but a failure to do so could lead to increased volatility.