Bitcoin's Bearish Storm: $80K in Sights as Derivatives and On-Chain Metrics Flash Red

Bitcoin's (BTC) price trajectory is under scrutiny as bearish signals emerge from derivatives markets and on-chain activity. With the BTC price hovering near critical levels, traders are questioning if $80,000 could be the next target. This analysis explores the latest Bitcoin price trends, including a bearish shift in options skew, negative gamma exposure, and weakening on-chain metrics, all pointing to growing downside risks for BTC.

The recent rug pull scams have primed the crypto market, including BTC's value, for a potential crash. Options and futures data suggest more downsides ahead for Bitcoin. Deribit Skew, a key metric tracking demand for puts vs. calls, has flipped bearish, reflecting heightened fear among traders. The short-term skew has flipped to put premium, suggesting aggressive put buying dominates. With 1-week skew plunging into negative territory, traders are hedging against a potential Bitcoin price drop, mirroring sentiment during past market tops. The long-term skew remains slightly negative, signaling a lack of long-term bullish conviction.

The Bitcoin Gamma Exposure chart reveals a critical vulnerability for Bitcoin price. The negative gamma below $90K shows that market makers are 'hort gamma' up to the $90,000 strike price. If BTC price falls, they'll be forced to sell BTC to hedge positions, accelerating downward momentum. This creates a "negative feedback loop" where selling begets more selling, as many traders, including Nazri, call this scenario a "goblin town." Limited positive gamma for calls above $96K indicates weak bullish momentum, reducing chances of a near-term rebound.

While options data paint a bearish picture, on-chain metrics exacerbate this outlook. Bitcoin liquidation map shows short liquidation clusters up to $86K. Nazri suggests that BTC price could crash lower and hunt these positions before a "sustained move higher." A bearish breakdown with a daily candlestick close below the $90,000 psychological level could catalyze a swift drop to $85,000, which is the first target. Beyond this, if the sell orders continue to pile up, the Bitcoin price forecast remains bearish with a second target of $80,000.

Prepare for volatility, as the current data—bearish skew, negative gamma, and weak on-chain activity—