Analysis: Further sharp BTC drop unlikely as traders eye consolidation

While the Bitcoin (BTC) derivatives market shows signs of caution regarding short-term downside risk, most traders anticipate a period of consolidation rather than a significant further decline, according to a Cointelegraph report citing Laevitas data. The report notes that the most active options strategies, such as the long straddle and long iron condor, are primarily focused on volatility rather than directional bets. This suggests that large-scale investors and market makers expect BTC to trade sideways and accumulate near the $89,500 level instead of experiencing another sharp sell-off. Furthermore, long-to-short ratios on major exchanges do not indicate extreme bearish sentiment. The ratio for top traders on Binance has risen to 2.18, while leading accounts on OKX have increased their long positions even after Bitcoin failed to hold the $90,000 support level.