Bitcoin Options Traders Bet on $90,000 Rebound, Analysts Point to Early Signs of Market Bottom Formation

According to data from on-chain derivatives platform Deribit, Bitcoin options traders are building positions for a rebound towards $90,000, with early signals suggesting the market may be attempting to form a bottom.

Sean Dawson, Head of Research at Deribit, pointed out that Bitcoin's volatility has retreated to the 50% range, a level historically associated with consolidation rather than panic selling. The 25-delta skew indicator has recovered from around -15% in late February to approximately -7%, indicating traders are shifting from aggressive defense to more balanced expectations. Bitcoin options expiring on March 27th hold the largest current open interest, with significant accumulation of call options at the $80,000 and $90,000 strike prices, showing that bulls are positioning for a recovery into the $85,000 to $95,000 range over the next month. However, there remains substantial open interest in put options at the $60,000 and $55,000 strike prices.

Bitcoin is currently trading around $84,000, down 3.2% over the past 24 hours. U.S. spot Bitcoin ETFs previously saw four consecutive months of net outflows, but have recorded over $1 billion in net inflows over the past three days, with Thursday's net inflow reaching $254.4 million. BlackRock's IBIT and Bitwise's BITB contributed $275.8 million and $69 million, respectively.

Binance Research noted that hedging in the options market has reached its most extreme level since the FTX collapse, and recent cryptocurrency price movements have been highly correlated with high-beta tech stocks. Han Tan, Chief Market Analyst at Bybit, stated that the $70,000 psychological level has consistently suppressed bulls this month, and Bitcoin may record its fifth consecutive monthly decline. However, fundamentals remain supportive, and once the macro environment clarifies, fund flows could reverse.