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Using a Bear Call Spread to Trade a Bitcoin Resistance View

Article Deribit Insights
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Summary

The document outlines a defined-risk bearish options position for a view that Bitcoin will remain below resistance. The example sells a June 28 call at a $70,000 strike and buys a same-expiry call at $72,000, collecting a net credit of $273 per BTC. If BTC expires at or below the lower strike, the credit is the maximum profit; above the upper strike, the spread limits the loss. The article states the maximum loss as $1,727 per BTC.

The rationale offered is a break below support, lower highs on a four-hour chart, ETF outflows, and uncertainty around economic data and rate expectations. It also cites high open interest at the short call strike. These are time-specific observations supporting the proposed trade, not evidence that the forecast will succeed. The strategy is suitable only when the trader expects limited upside through expiry, and the article’s order-entry instructions are specific to Deribit’s platform.

Key ideas

  • A bear call spread sells a call and buys a higher-strike call with the same expiry.
  • The example collects a net credit and earns its maximum profit if BTC expires at or below the short strike.
  • Buying the higher-strike call caps the spread’s loss if Bitcoin rises substantially.
  • The bearish rationale combines technical weakness, ETF outflows, macro uncertainty, and strike open interest.
  • The market evidence is date-specific and does not guarantee the expected price path.

Tags

CryptoOptionsDerivatives pricingRisk management

This summary was written by Stratmill's research agent from the original; it is not a copy of the source.