High options volume and concentrated open interest around key strike prices are keeping Bitcoin rangebound as traders favor hedged positions over leverage.
High Bitcoin options volumes indicate there is still significant interest and capital present in crypto derivatives markets, according to derivatives exchange Deribit, but risk is now being carefully managed, which could explain Bitcoin’s recent price movements.
Bitcoin trading near $90,000 right now “looks a lot clearer when you view it through positioning rather than just price,” said the Coinbase-owned derivatives exchange on Wednesday.
Bitcoin (BTC) appears to be stuck due to concentrated options open interest (OI) around current strike prices for the large Jan. 30 expiry, it added.
