Geopolitical tensions and inflation fears are driving institutional traders to hedge with bearish Bitcoin options, according to market analysis. Despite this, technical indicators on key timeframes suggest a potential price bounce remains possible as Bitcoin defends crucial support levels above $60,000.
The West Asia crisis fueled a surge in oil prices and broader inflation fears. This led to increased demand for put options as institutional traders hedged against potential downside.
Short-term holders also showed intent to protect profits or exit at breakeven. Their actions are seen capping the potential for any significant rally.
Analysis of the three-day chart highlighted a swing low at $60,000 in February. The subsequent bounce was considered incomplete as it failed to reach the key $78,900 level.
Many analysts consider the area above a 50% retracement as “premium.” A move into this zone could precede the next bearish swing.
On the four-hour chart, Bitcoin defended the $65,900 swing low. The inability to set new lows in recent weeks was noted as an intriguing development.
The structure remains bullish until a close below $65,618. A three-day session closing below $60,000 would signal a continuation of the longer-term downtrend.
Until these levels break, expecting a bounce toward the premium area above $78,900 is valid. The market is currently waiting for a catalyst to drive the next decisive move.
