Feb 20, 2026
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BEARISH 📉 : Bitcoin Options Market Structure Points to Potential $60K Retest
Bitcoin options traders are positioning for a potential downside, with a significant premium on protective puts as the price struggles to reach the $70,000 mark. Current derivatives data suggests a possible retest of the $60,000 support level due to ongoing weakness in the spot market.
Key Observations
- Traders pay a 13% premium for put options relative to calls, indicating elevated caution.
- The delta skew deviates from the neutral range (-6% to +6%), reflecting a defensive institutional sentiment.
- $910 million in Bitcoin ETF outflows adds to bearish pressure, following recent crypto liquidations totaling $1.4 billion.
- Traders employ strategies favoring stagnation or moderate downside, such as bear diagonal spreads and short straddles.
- Market makers anticipate a test of $60,000 rather than an immediate rebound.
Technical Structure
- If support at $66,000 fails, there may be impacts on spot liquidity due to short gamma buildup.
- The current odds suggest Bitcoin might test $65,000, but lower levels are possible.
- The USDT premium against the Chinese Yuan is at a 0.2% discount, showing low buy-side pressure.
Implications for Traders
- Semi-professional investors should be cautious due to negative spot flows and defensive options positioning.
- Monitoring ETF flow data is crucial; a reversal might neutralize the current bearish trend.
Despite short-term market challenges, the infrastructure for institutional derivatives is maturing, offering more sophisticated trading tools. Recent integrations like Ripple Prime's with Hyperliquid are examples of this evolution.