ChainCatcher reported that glassnode said Bitcoin (BTC) has fallen back into an important support area after retesting its February lows. The move has taken place as the options market shows a clear decline in the pricing of future uncertainty, even though spot price remains close to key levels.
According to the data cited by glassnode, 1-week implied volatility has dropped from around 60% to 35%. The broader volatility curve has also shifted lower, indicating that the market’s pricing of uncertainty has cooled noticeably from recent highs. At the same time, 25-delta skew has retreated from the extreme levels seen during the sell-off, while short-term demand for protection has normalized to some extent. This points to a reduction in panic-driven hedging behavior.
However, the cooling in volatility does not mean that positioning has turned fully constructive. Glassnode noted that structural defensive positioning still dominates. Short-dated options continue to lean toward downside protection, with put option activity over the past week accounting for about 28% of trading, clearly above the 24.1% share represented by call buying.
The data also shows that 1-month implied volatility has fallen below realized volatility, creating a situation in which the options market is underpricing current realized movement. This gap between implied and realized volatility is occurring while BTC remains near an important support region.
In terms of gamma positioning, glassnode said there is a significant short-gamma concentration near $62,000, with a size of about $1.8 billion. If price moves further lower, volatility expansion could accelerate. Around $60,000, however, there is a degree of long-gamma buffering. Overall, while volatility has cooled, the market remains positioned in a defensive structure.