Bitcoin's Decline May Deepen: A Level of 75 Thousand Dollars is Expected

Bitcoin (BTC) has lost more than 25% of its value in the last month, currently trading at $83,700. This sharp decline observed in the markets has also increased bearish expectations in the options market. Specifically, when Bitcoin's price fell below $94,000, a notable increase in demand for put contracts with a strike price of $75,000 was observed among investors.

This situation suggests that investors are in search of a new bottom. Analyzing the options data, it appears that the put positions at the $75,000 level indicate a scenario reminiscent of the $74,000 bottom level seen in April. According to data reported by CoinDesk, the previously popular $140,000 call contracts have now been replaced by $85,000 put contracts. This situation clearly illustrates the sharp shift in the overall market outlook.

In the past week, more than 65% of Bitcoin options trades have been put contracts. This scenario highlights both the necessity to hedge against downside risks and the efforts of investors to develop strategies by exploiting volatility differentials. Investors tend to sell short-term high volatility and buy longer-term low volatility during this process.

Overall data indicates that no clear bottom signal has yet been received in the markets, and many investors are positioned against the likelihood of a deeper pullback. Critical levels that investors should pay attention to include $75,000 and $74,000. These levels may provide important clues about the future direction of Bitcoin's price.