Glassnode Weekly Report: Panic pricing has subsided; it is recommended to hedge cautiously rather than bottom-fish.

DeepFlowTech · 2026-02-22T02:07:33+00:00

Bitcoin remains consolidating below 70K, with options market volatility expectations reset. Implied volatility has compressed to 48%. Put activity dominates, indicating a focus on downside risk. Panic pricing is fading, but the market still maintains defensive positions, and caution is advised for potential volatility.

DeepFlowTech

2026-02-22 02:07:33

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Deep Tide TechFlow News, February 22 — According to the latest BTC options weekly report from Glassnode, Bitcoin is consolidating below 70K, and market volatility expectations have been significantly reset: ATM implied volatility (IV) has sharply compressed from recent highs to around 48%, no longer pricing an imminent crash scenario; the volatility index DVOL has fallen about 10 points, confirming easing pressure; the volatility risk premium (VRP) has shifted from -45 earlier this month to positive, indicating short-term options are once again trading at a premium.

Meanwhile, the skew indicator remains tilted toward puts: the 25 delta one-week skew rebounded from a low of 7 to 14, showing traders continue to focus on downside risk rather than upside potential; last week, put activity accounted for two-thirds of total trading, with puts making up 34%, dominating the downward flow. Dealers are overall short gamma, especially in the 58K-70K range, which could accelerate a potential sharp decline; however, gamma clustering around 75K suggests a rebound is also being positioned for.

Overall view: panic pricing has subsided, but defensive positioning and fragile structures still exist, making the market vulnerable to further volatility shocks in the short term. Caution is advised against rushing to buy the dip, and instead, focus on potential pullbacks.

BTC-1,65%

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