Bitcoin options traders are increasingly positioning themselves on the downside, paying a large premium for protection as the asset struggles to reclaim the $70,000 mark. The new derivatives data indicates a structural shift that could portend a retest of the $60,000 support level in the coming weeks alongside continued weakness in the spot market.
Bitcoin Coinbase Premium has been positive for 35 days.
This is the longest period of negativity in 3 years. pic.twitter.com/bIqQDcYAFI
– ChefraT (@ChiefraFba) February 19, 2026
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Disadvantages of Bitcoin Options Data Signals
Professional traders currently pay a 13% premium for puts over calls, a metric that indicates great caution. Under neutral market conditions, the delta typically ranges between -6% and +6%. The persistence of this premium over the past four weeks suggests that institutional sentiment has definitely shifted toward a defensive stance. This matches recent trends in the spot market, where analysts have warned that Bitcoin could fall towards lower support levels amid institutional selling.
Additionally, recent data shows $910 million in
BTC
$67,539
24h volatility:
1.0%
Market capitalization:
$1.35 ton
Flight. 24h:
$20.02 billion
ETF exits, aggravating the downward pressure visible in the derivatives sector. This risk-averse environment comes shortly after crypto liquidations reached $1.4 billion, serving as a stark reminder of the risks inherent in leveraged positions during bursts of volatility.
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Key levels and technical structure
The technical structure of the options market reveals specific strategies deployed on exchanges like Deribit. Data indicates that traders favor bearish diagonal spreads and short straddles, strategies that generally benefit from stagnation or moderate decline. The structure of the options market implies a build-up of short gamma which could impact spot liquidity, particularly if support at $66,000 fails to hold.
Bitcoin Price Analysis Source: TradingView
Prediction markets are also reacting to this change in sentiment. Current probabilities suggest a higher probability of Bitcoin price tests $65,000, although it could be there lower. Another bearish indicator is the demand for stablecoins in Asia; USDT’s premium against the Chinese yuan has fallen to a 0.2% discount, signaling a lack of urgent buying pressure. Although some analysts note that a $40,000 BTC put option stands out in terms of open interest, this likely represents significant out-of-the-money hedging rather than a primary price target for the majority of the market.
Open interest by strike price Source: Deribit
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What this means for Bitcoin traders
For semi-professional investors, the convergence of negative spot flows and the positioning of defensive options calls for caution. The market makers’ effective bet appears to be a test of $60,000 rather than an immediate rebound. Traders should closely monitor ETF flow data; a reversal is likely needed to neutralize the current bearish bias in options.
On February 19 (ET), spot Bitcoin ETFs saw a total net outflow of $166 million, marking the third consecutive day of net outflows. Spot Ethereum ETFs saw total net outflows of $130 million, with BlackRock’s ETHA leading the way with $96.80 million in net outflows. pic.twitter.com/fNPHmfvyVJ
-Wu Blockchain (@WuBlockchain) February 20, 2026
Despite negative short-term price action, institutional derivatives infrastructure continues to mature. Recent developments, such as Ripple Prime’s integration with Hyperliquid, highlight the growing sophistication of access to on-chain trading. As these platforms evolve, they could offer traders more precise tools to manage standard deviation risks during corrective phases like the current one.
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Disclaimer: Coinspeaker is committed to providing unbiased and transparent reporting. This article is intended to provide accurate and current information, but should not be considered financial or investment advice. Because market conditions can change quickly, we encourage you to verify the information for yourself and consult a professional before making any decisions based on this content.
Daniel Frances is a technical writer and Web3 educator specializing in macroeconomics and DeFi mechanics. Hailing from crypto since 2017, Daniel leverages his experience in on-chain analytics to write evidence-based reports and in-depth guides. He holds certifications from the Blockchain Council and is dedicated to providing “insight gain” that overcomes market hype to find real utility for blockchain.
