Data compiled by Woofun AI shows Bitcoin (BTC) has retraced to a critical support zone following a retest of February lows. Although the asset remains near pivotal technical levels, implied volatility has contracted sharply from recent peaks, with 1-week metrics declining from approximately 60% to 35%. This downward shift in the volatility curve reflects a marked reduction in the market’s pricing of future uncertainty.

Concurrently, the 25Δ skew has retreated from extreme sell-off levels, indicating that panic-driven hedging demand is normalizing.

Despite this cooling, structural defensive positioning remains prevalent. Bearish option transactions accounted for roughly 28% of volume over the past week, outpacing bullish option purchases at 24.1%.

Furthermore, 1-month implied volatility has dipped below realized volatility, suggesting a potential underestimation of actual market risk. A substantial short gamma concentration of approximately $1.8 billion exists around the $62,000 mark, which could amplify volatility if prices decline further, whereas a long gamma buffer provides some cushion near $60,000.