Bitcoin’s much-anticipated rise above the $100,000 mark remains elusive, with prices retreating to $94,500 overnight. Market indicators point to further potential declines, raising concerns about a dip below $90,000.

One major factor is the shift in the 25-delta risk reversal metric, which tracks the volatility premium of out-of-the-money (OTM) call and put options. On Deribit, traders are now favoring puts over calls, signaling a bias toward protective downside strategies. This negative risk reversal, the first in over a month, suggests sophisticated traders are bracing for a continuation of Bitcoin’s Monday price slide. Activity on over-the-counter networks like Paradigm has also revealed increased demand for put options, indicating growing caution in the market.

Another concern stems from the Coinbase premium indicator, which has flipped negative. This measure compares Bitcoin’s price on Nasdaq-listed Coinbase with its value on offshore exchanges like Binance. Historically, higher Coinbase premiums have signaled robust U.S. demand, a key driver of Bitcoin’s previous surge from $70,000 to $99,500. However, the renewed discount on Coinbase reflects weaker stateside interest, further dampening bullish sentiment.

Adding to the bearish outlook is a divergence in the relative strength index (RSI), a momentum oscillator. While Bitcoin recently reached a new high near $99,000, the RSI failed to follow suit, indicating that upward momentum has stalled. Such divergences often precede price declines, suggesting that Bitcoin’s recent bullish phase may have run its course for now.

Technical charts indicate a potential support range between $87,000 and $88,000, where buyers could step in to stabilize the market. However, the overall sentiment remains cautious, with long-term studies still leaning bullish despite current vulnerabilities. For now, traders are closely monitoring the interplay of these factors to navigate Bitcoin’s unpredictable path.