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

CycleProphet · 2026-02-22T02:11:07+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.

CycleProphet

2026-02-22 02:11:07

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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 re-pricing for downside risk.

Meanwhile, the skew indicator remains tilted toward puts: the 1-week 25 delta 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 potential large declines; however, gamma clustering around 75K suggests some positioning for a rebound.

Overall view: panic pricing has subsided, but defensive market positioning and fragile structures remain, making the market susceptible to further volatility shocks in the short term. Caution is advised against rushing to buy the dip and instead watching for potential pullbacks.

BTC0.4%

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