The aggregated open interest for Bitcoin options has climbed to record levels, creating concentrated put exposure for dealers.
Bitcoin traded at approximately $109,000 on Oct. 23, reflecting a monthly decline exceeding 3%. Timothy Misir from BRN described the current market conditions as testing investor patience beneath the short-term cost basis, with options open interest reaching new highs.
The aggregated open interest for Bitcoin options has climbed to record levels, creating concentrated put exposure for dealers. Short gamma positions are forcing aggressive hedging on modest delta moves, which expands intraday ranges and increases vulnerability to sudden price squeezes around key strike levels.
Multiple attempts to breach the $113,000 resistance have pushed weaker participants into selling positions. A breakdown below the $108,000 support band could trigger drawdowns toward $104,500, with potential extensions to the $97,000 zone according to BRN analysis.
Spot Bitcoin exchange-traded funds recorded $101 million in outflows yesterday, while Ethereum ETFs posted $19 million in withdrawals. These flows demonstrate wavering institutional appetite following recent liquidity disruptions across digital asset markets.
The U.S. government shutdown has suspended most economic data releases, leaving Friday's CPI print as the sole major indicator. QCP Capital noted that this Bureau of Labor Statistics report could reshape the soft-landing narrative and influence Bitcoin's price trajectory depending on whether inflation comes in near 0.2% or runs hotter than expected.
Analysts remain divided on near-term price direction. Standard Chartered warned that a dip below $100,000 appears probable by the weekend, though the institution expects any pullback to be temporary rather than marking a sustained bearish trend.
Several market observers are monitoring the 50-week simple moving average at $102,500 as a critical support level. Analyst Sykodelic noted substantial leverage remains in the system alongside a large liquidity cluster near $104,000, suggesting this technical indicator could be tested despite current holder reluctance.
BRN characterized the current environment as a proof-of-conviction phase where ETFs and treasuries accumulate paper instruments while long-term holders distribute their positions. This dynamic keeps Bitcoin trapped below the short-term holders' cost basis, rendering upward movements fragile and susceptible to reversal across the range bound market structure.
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