Bitcoin’s December Consolidation Could Be Near Its End

Bitcoin’s extended stay between $85K–$90K throughout December wasn’t driven by weak sentiment, but by derivatives positioning.

Large options exposure clustered around spot levels forced market makers into delta-hedging mode — buying pullbacks and selling strength. This mechanical flow compressed volatility and kept price locked in a tight range, even as macro conditions and risk appetite improved elsewhere.

That structure is now shifting.

As year-end options expire, nearly $27B in open interest is set to roll off. With calls still dominating positioning, the hedging pressure that capped price action begins to unwind.

At the same time, implied volatility sits near monthly lows, indicating the market may be underestimating the magnitude of the next move.

When price is constrained by positioning for weeks, the release tends to be swift once those constraints fade.

📊 Range compression rarely resolves quietly.

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