Bitcoin options still bullish despite this week's $900 BTC price drop

The $900 Bitcoin price drop over the past two days might have been scary for novice traders, but those trading futures and options don't seem bothered.

As Bitcoin price rallied to $11,000 on Sept. 19, investors may have become overly excited as the price briefly broke an important resistance level.

Indicators such as basis, options skew, and futures open interest price provide real-time data on how professional traders adapted after the drop to $10,300, along with BTC's brief rebound to $10,500.

To assess whether this is the case preventing yesterday's sharp price drop from impacting liquidations, we need to analyze future contracts basis.

Apart from a brief moment on September 3, when Bitcoin faced a $2,000 drop over two days, the basis indicator has held above 5%.Nevertheless, this premium could have been caused by factors not directly related to traders' bullishness.

Call options allow the buyer to acquire BTC at a fixed price on contract expiry.

On the other hand, put options provide insurance for buyers and protect against BTC price drops.

Whenever market makers and professional traders are tending bullish, they will demand a higher premium on call options.

The put options that protect from downside should trade at a larger premium than call options during bearish markets.

Professional traders will continue to keep a close eye on the VIX indicator in order to decide whether a BTC drop seems strictly stock-market related.