Bitcoin's Decline May Deepen: $75,000 Level Expected

Bitcoin (BTC) has lost more than 25% of its value in the past month, currently down to $83,700. This sharp decline observed in the markets has also increased bearish expectations in the options market. Notably, when Bitcoin's price fell below $94,000, there was a significant increase in demand for put contracts with a $75,000 strike price.

This situation suggests that investors are in search of a new bottom. An analysis of options data indicates that put positions at the $75,000 level resemble a scenario reminiscent of the $74,000 dip level seen in April. According to CoinDesk, the once-popular $140,000 call contracts have now been replaced by $85,000 put contracts. This change clearly reflects the sharp shift in the overall market outlook.

In the past week, more than 65% of the Bitcoin options trades have been put contracts. This picture illustrates both the need for protection against downside risks and the efforts of investors to develop strategies by taking advantage of volatility spreads. During this process, investors tend to sell short-term high volatility and buy longer-term low volatility.

General data shows that there has not yet been a clear bottom signal in the markets, and many investors have positioned themselves against the possibility of a deeper pullback. Key levels that investors should pay attention to include $75,000 and $74,000. These levels could provide crucial clues about the future direction of Bitcoin's price.