- Bitcoin sees bullish short-term options activity, shifting market dynamics.
- Short-term demand does not alter long-term bearish risks.
- Market reactions focus on potential volatility and sustainability.
In mid-January, Bitcoin’s options market revealed short-term bullish activity as Glassnode reported a significant shift in the one-week 25-day skew from bearish to neutral.
Short-term bullish signals contrast with longer-term bearish outlook, highlighting potential risks despite recent interest in call options. Illegal to conclude whether this rally is sustainable.
Bitcoin’s January Rally: Options Market Turns Bullish
Glassnode reported a shift from deep bearish territory to neutral for the one-week 25-day skew amid mid-January’s Bitcoin rally. The put/call ratio dropped significantly from 1 to 0.4, indicating bullish tendencies concentrated in the short term.
The trading volumes increased, with Bitcoin options volumes spiking 68% to ~10 billion USD. However, longer-term skews exhibit a consistent bearish outlook, with the one-month and three-month skews remaining in the bearish zone. Persistent asymmetric downside risk suggests limited long-term shifts.
Skew reverted to call premium across BTC curve (2 vol short-end to 8 vol Sep 2024), indicating a healthy correction in a very strong uptrend. — Deribit Insights
Price Trends and Market Sentiment: An Analytical Perspective
Did you know? The 30-day put skew for Bitcoin recently hit yearly lows, highlighting elevated downside volatility risk first noted under similar market dynamics in January 2021.
As of January 23, 2026, Bitcoin (BTC) held a price of $89,124.95 with a market cap valued at $1.78 trillion. Despite recent trading momentum, Bitcoin’s 24-hour trading volume declined by 29.42%, and the 90-day price changed by -20.13% as per CoinMarketCap.
Insights from the Coincu research team indicate that while market participation shows a strong short-term bullish interest, the longer-term bearish skew suggests continued caution against volatility and potential downside risks. Insights from studies such as Block Scholes Study: Shift in Bitcoin Sensitivity Observed reinforce this cautious outlook, with market signals pointing to an unstable foundation without key breakout indicators.
| DISCLAIMER: The information on this website is provided as general market commentary and does not constitute investment advice. We encourage you to do your own research before investing. |
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