BTC is back at a major support zone as price tests the February lows.

Here's what BTC options data reveals about positioning, volatility, and sentiment beneath the surface.

Volatility Cools From Recent Highs

BTC implied volatility has eased despite price testing the Feb lows.

1 week IV has fallen from 60% to 35%, with the rest of the curve also drifting lower.

The market is pricing less uncertainty than two weeks ago.

https://glassno.de/4elkXSs

Protection Demand Normalizes

25D skew has eased from the extreme levels reached during the June selloff.

1 week skew has fallen from nearly 30% to 15%, with the rest of the curve also normalizing.

The rush for downside protection has largely subsided.

https://glassno.de/4oCtPGR

Calls Continue to Lose Ground

The skew index ratio compares upside IV against downside IV.

Near term options continue to favor downside exposure over upside participation.

https://glassno.de/44j2eRD

Volatility Risk Premium Turns Negative

1M IV has fallen below realized volatility.

Implied volatility sits near 39%, while realized volatility has risen above 42%.

Recent price swings have exceeded what options markets are currently pricing.

https://glassno.de/4xID4cM

Short Gamma Remains Dominant

The largest negative gamma cluster sits at 62K, just below spot, where $1.8B of short gamma is concentrated.

A move lower could accelerate a retest of 60K, where a small pocket of long gamma may help contain volatility.

https://glassno.de/3QvDHFC

Put Buying Continues to Lead

Put buying dominated taker flow over the past 7 days, accounting for 28% of premium traded.

Put selling followed at 26.8%, while call buying represented 24.1%.

The tape continues to favor protection over upside exposure.

https://glassno.de/44kFm4a

Wrap Up

Implied volatility has cooled.

Protection demand has normalized.

Calls remain out of favor.

Realized volatility exceeds implied volatility.

BTC sits on a major short gamma cluster.

Flow continues to favor puts.

Defensive positioning persists near key support.

What the Oil Price means for $BTC

📊Chart of the Week: WTI Crude Oil

Watch on X

The Altcoin Cycle Signal is back in Altcoin Season. The typical version of this print has alts running while BTC stays bid. Currently, we see alts running out of sellers after nearly two years and BTC drawing down aggressively. For now, the BTC side is still doing most of the work.

https://glassno.de/4eIE8Vr

Hyperliquid traders are increasingly leaning long despite $BTC remaining well below its highs. Positioning has become progressively more bullish through the downtrend, highlighting persistent dip-buying and growing squeeze potential.

📈https://glassno.de/4g0NjTp

Since mid-May, the 7D-SMA of US Spot ETF aggregated flows has not recorded a single net positive day.

This suggests but an absence of institutional demand. TradFi capital has yet to re-engage with BTC at current price levels.

📉 http://glassno.de/btc-etf-flows-all