Why Can’t Bitcoin (BTC) Rise? Deribit Explains the Overlooked Reason!

Bitcoin (BTC) has been stuck between $84,000 and $95,000 for some time. While BTC has attempted upward movements, it has been unsuccessful, and during declines, the support level around $83,000 has been maintained.

While Bitcoin continues this sideways movement, the crypto derivatives exchange Deribit announced that open positions in Bitcoin options are concentrated at certain price points, which is suppressing volatility.

According to Deribit, the concentration of positions at certain price points in the options market is causing Bitcoin to continue trading sideways around $90,000.

Deribit noted that large option positions expiring on January 30th are concentrated around the current price of $90,000, and stated the following:

“Supply increases to reduce risk during price increases, and demand increases for position adjustments during price decreases.”

This creates a structure that traps the price within a narrow range.

According to Deribit data, Bitcoin options with a nominal value of approximately $8.4 billion will expire on Friday.

A pull/cut ratio of 0.54 indicates that call options are in a dominant position. The maximum potential loss is approximately $90,000.

*This is not investment advice.

Continue Reading: Why Can’t Bitcoin (BTC) Rise? Deribit Explains the Overlooked Reason!