Bitcoin falls below $91,000… Rise blocked by option selling, when will the reversal occur

Source: BlockMedia Original Title: [New York Coin Market/Closing] Bitcoin Falls Below $91,000… Rising Halted by Option Sellers, When Will Reversal Occur Original Link: The New York digital asset market experienced continued selling pressure, leading to a widespread decline among major coins. Bitcoin(BTC) fell 1.5% in a day, dropping below the $91,000 mark, while major altcoins like Ethereum(ETH) and Solana(SOL) also showed weakness. Overall market sentiment remained neutral, but short-term supply-demand gaps and structural constraints exerted downward pressure on prices.

According to CoinMarketCap, the total market capitalization of digital assets decreased by 1.48% to $3.161 trillion, and the market benchmark index CMC20 fell 1.81% to 193.62. The Alternative’s greed and fear index stood at 49, indicating a ‘neutral’ level.

Bitcoin, the market’s top market cap asset, traded at $99,938, down 1.61% from the previous day. Ethereum also declined 2.86% to $3,132, retreating into the $3,100 range after four days. XRP(XRP) plummeted 3.35% today but still recorded an 18.7% weekly increase. Cardano(ADA) fell 1.73% daily but surged 20.5% over the past week, maintaining some upward momentum. Solana(SOL) declined 2.28%, while Dogecoin(DOGE) showed little daily fluctuation but rose 24.4% weekly, indicating strength.

The market’s bearish outlook is attributed to simultaneous fund outflows related to Bitcoin ETFs(ETF) and structural selling pressure from option dealers. U.S. institutional investors experienced net outflows of approximately $1.6 billion from ETF positions, which has been a key factor limiting short-term upward momentum.

Market participants are paying attention to the structural reasons why Bitcoin’s price struggles to break above the $100,000 resistance level. Traders diagnose, “BTC’s weakness is not so much about the price itself but because option market dealers are selling to suppress volatility, keeping the price in a $90,000–$95,000 range.”

He added, “This structural constraint is temporary, and once the hedging pressure weakens around the mid to late January option expiry(, the price could break out of this range.”

He explained, “Such structural constraints are not easily resolved without strong external demand, but over time, as option positions and hedge demands naturally diminish, a trend reversal will eventually occur.”

“BTC is still about 24% undervalued based on long-term trend lines, and when both low volatility and undervaluation coexist, a significant directional shift tends to happen,” he concluded.