The reason Bitcoin is stuck at $90,000… The 'Invisible Wall' of the Options Market

Source: BlockMedia Original Title: Why Bitcoin is Stuck at $90,000… “The Selling Pressure Is Stronger Than the Buying” Original Link: https://www.blockmedia.co.kr/archives/1029877 Bitcoin continues to hover in a frustrating range, unable to break above the early $90,000s or drop significantly lower. On the surface, it may seem like buying sentiment has weakened, but market insiders suggest that an ‘invisible mechanism’ is at work, holding the price in place.

The key lies in the options market. Cryptocurrency analyst David shares a chart and explains, “The current Bitcoin price movement is not driven by investor judgment but by a mechanical structure that is preventing the price from moving.”

In the options market, as Bitcoin’s price rises, automatic sell orders are triggered. Dealers who sold options sell Bitcoin to avoid losses when prices go up, and buy back when prices fall. Simply put, it’s a structure where upward movement is suppressed and downward movement is supported.

David describes this as “Bitcoin being trapped inside an invisible (cage).” Currently, the bottom of this cage is around $90,000, with the ceiling near $100,000.

Looking at actual option distributions, there is a concentration of put options around $90,000 that prevent further declines, and call options at $100,000 that limit upward movement. This creates a structure where Bitcoin struggles to break out of the $90,000–$95,000 range.

David states, “To break through $100,000, mere optimism is not enough,” adding, “It requires enough ‘real funds’ to absorb all the sell pressure pouring into the options market.” Market analysts estimate that about $500 million in net spot buying is needed to break this barrier.

The problem is that this capital is currently taking a brief pause. Recently, approximately $1.6 billion has exited Bitcoin ETF products. However, the market interprets this not as panic selling but as a temporary outflow due to year-end tax settlements and portfolio adjustments.

In such a scenario where major investors are stepping back, the influence of the options structure becomes even more pronounced. As a result, Bitcoin repeatedly faces resistance when trying to rise and gets pulled back when it attempts to fall.

However, this structure will not last forever. Options have expiration dates and will naturally expire over time.

David explains, “After the mid-January and end-of-month options expiries, the constraints on price suppression could weaken noticeably,” adding, “If new buying funds flow in at that point, Bitcoin is more likely to reset to a higher price level rather than gradually rising.”

He also notes, “From a long-term perspective, Bitcoin is still about 24% below its fair value,” and adds, “In periods of low volatility and suppressed prices like this, most past major trend reversals have followed.”