BEARISH 📉 : Bitcoin traders maintain defensive stance amid fading market panic

Bitcoin is set for its fifth consecutive monthly loss, struggling below the $70,000 resistance. Market participants are showing reduced volatility expectations, indicating a potential easing of bearish sentiment.

Key Points:

Recent data indicates a drop in At-the-Money (ATM) implied volatility to around 48%, suggesting a decrease in anticipated price crashes.
DVOL, an aggregate implied volatility indicator, has decreased by 10 points, reflecting lower hedging demand.
The short-term volatility risk premium (VRP) has turned positive, with implied volatility now aligning more closely with realized volatility.

Market Sentiment:

Despite lowered volatility expectations, traders remain cautious, as evidenced by the heightened demand for downside protection via put options.
The one-week 25-delta skew rebounded to 14 vol points, indicating persistent demand for downside insurance.
Puts accounted for two-thirds of recent options activity, highlighting ongoing defensive positioning.

At present, Bitcoin trades at $67,628, reflecting a 0.92% gain over the last 24 hours. The market's gamma positioning suggests potential selling pressure if prices fall, while a rebound could occur near a $75,000 concentration.