Analysis Firm Says: “$70,000 Could Be Bitcoin’s Last Line of Defense” – Options Analysis Is In
Cryptocurrency analytics company GreeksLive has analyzed Bitcoin’s recent price movements and the outlook for the options market.
According to the company’s analysis, the Deribit Bitcoin index fell as low as $70,992 during the day, but the price is currently trading around the psychological $70,000 level, which is closely watched by investors.
GreeksLive noted that the $70,000 level is not only a psychological threshold but also a critical area with significant open positions in the options market. The implied volatility (IV) of short-term at-the-money (ATM) options, i.e., those with a strike price closest to the current market price, is around 30 percent. The absence of a sharp, panic-driven rise in volatility indicates that the market is not pricing in a one-way collapse, but rather is awaiting a new breakout that will determine the direction.
GreeksLive: “Concentration Around $70,000 in Bitcoin”
The company noted that before last month’s option expiry, the $72,000 level represented a significant cluster of gamma exposure (GEX), but after expiry, this concentration shifted to the $70,000 strike price. This situation, it was stated, made the $70,000 level both a significant support point and a defensive line where short positions and hedging put options were concentrated.
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According to options data, put options have higher implied volatility levels, and the skew indicator shows a downward trend. GreeksLive stated that this reveals investors are willing to pay a higher premium against the risk of a decline and that defensive positioning continues in the market.
On the upside, attention was drawn to the “buying wall” structure concentrated around the $80,000, $90,000, and $100,000 levels. The company noted that strong positions in long-term call options were being maintained, indicating continued medium- to long-term bullish expectations, but stressed the need to protect the $70,000 level in the short term.
According to GreeksLive, Bitcoin’s short-term trajectory will largely depend on this level. Analysts believe that if the $70,000 support holds, implied volatility could decrease and a recovery in the spot market could begin. Conversely, a break below this level with high trading volume could increase demand for hedging put options, potentially raising short-term volatility and causing the price to fall towards the $68,000-$65,000 region.
*This is not investment advice.
