Bitcoin's top call option slips to $70K as traders lower price ceiling

Bitcoin options traders reset their bullish bets $10,000 lower, reflecting a more cautious outlook for the largest cryptocurrency's near-term ceiling.

Bitcoin's most popular call option strike price dropped to $70,000 from $80,000, with open interest exceeding $1.6 billion, as of 14:00 UTC on July 16.

The $70,000 strike now holds the highest open interest among all Bitcoin call options on Deribit, according to exchange data, surpassing the $80,000 strike that dominated for much of June.

Bitcoin traded at $64,174 as of 14:30 UTC, down 1.1 percent from 24 hours earlier, after briefly touching a three-week high of $65,500. Profit-taking and renewed geopolitical tensions after Iranian strikes on U.S. bases in the Gulf triggered the pullback, CoinGecko data show. The retreat coincided with $59 million in combined outflows from Bitcoin and Ethereum products as traders rotated into stablecoins.

The concentration of open interest at $70,000 creates a technical barrier: dealers hedging large call positions tend to sell futures or spot as prices approach the strike, acting as a brake on upward momentum. With the 30-day implied volatility index at 38 percent, a level that has historically preceded renewed turbulence, Bitcoin faces a narrower path to reclaiming its March highs.

A bull call spread targeting $72,000 by the end of July recently crossed the tape on Deribit, suggesting some traders still see upside. But the broader options market tells a different story. The migration of the most popular strike from $80,000 to $70,000 implies the market now views $70,000 as the upper boundary, with $60,000 serving as the floor.

The shift comes as macro headwinds compound. U.S. inflation data came in softer than expected, briefly lifting Bitcoin to $65,470 before long-term holders and whales took profits near resistance. The 30-day implied volatility reading of 38 percent, while below historical stress levels, has consistently preceded periods of heightened price swings, according to Deribit data.

Ether underperformed, falling 1.7 percent to trade below $1,900, as bullish positions unwind. Open interest in ETH futures declined to 14.35 million ETH from a five-week high of 14.45 million ETH, suggesting long liquidation rather than fresh short selling. XRP futures saw open interest climb to a 10-day high of 2.21 billion XRP alongside a 0.6 percent spot decline, a combination that typically signals growing bearish exposure.

This article is for informational purposes only and does not constitute investment advice.