Hassan Maishera
TL;DR
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BTC has slipped below $68k after touching the $70k level on Wednesday.
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Traders believe the market is forming a bottom, and are now targeting the $90k level.
BTC Dips Below $68K As Recovery Stalls
Bitcoin rallied to the $70k level during the early hours of Thursday, with altcoins recording even bigger gains.
However, the recovery has stalled, with Bitcoin now trading below $68k. The leading cryptocurrency by market cap has lost 1.1% of its value since Thursday, with major altcoins also in the red.
Despite that, traders are optimistic that Bitcoin is forming a bottom and could rally towards the $90k psychological level in the near term.
In an email to Cryptowisser, Dr. Sean Dawson, Head of Research at leading onchain options platform, Derive.xyz, stated that the crypto market is beginning to show early signs of stabilisation after weeks of uncertainty, with derivatives positioning suggesting traders are quietly preparing for a recovery while still maintaining meaningful downside protection.
After a brief uptick at the start of February, Bitcoin volatility has settled back into the 50% range, which is historically associated with consolidation rather than panic selling.
“Options positioning reinforces this cautious optimism. The BTC March 27 expiry, which is currently holding the largest open interest across the market, shows significant call accumulation at the $80K and $90K strikes. This clustering suggests bullish traders are positioning for a recovery into the $85K to $95K range over the coming month as liquidity conditions stabilize,” the analyst added.
Dr. Dawson pointed out that conviction remains tempered. On the bearish side, substantial put open interest remains concentrated at the $60K and $55K strikes, indicating bears expect any drawdown to be contained within a defined range rather than a capitulation event.
The analyst concluded that volatility compression, improving sentiment metrics, and increasingly structured positioning suggest traders are transitioning away from defensive panic toward conditional optimism, preparing for upside participation while remaining protected against another leg lower.
