BlockBeats news, on May 26, data showed that Bitcoin's implied volatility has dropped to 36%, reaching its lowest level in nearly eight months, indicating that the market expects BTC to remain range-bound in the short term. While the decline in volatility itself does not indicate market direction, current derivatives market data suggests that short positions may be overly concentrated; if BTC breaks above $82,000, it could trigger a large-scale short squeeze.
CoinGlass’s liquidation heatmap shows a high concentration of BTC short positions in the $78,000–$83,000 range. Meanwhile, BTC has failed to reclaim $90,000 for nearly four months, prompting some short sellers to strengthen their bearish outlook. Additionally, Glassnode data reveals that BTC’s 30-day option Delta Skew remains at 14%, indicating a significant premium for put options over call options, reflecting that professional traders remain more concerned about downside risk for BTC.
The market has partially priced in the expectation of BTC retracing to $72,000, but a breakout above $82,000 with increased volume could trigger a stronger liquidation of leveraged short positions.