Bitcoin's recent price action, testing the $90,000 level, has led to a cautious sentiment in the options market, according to Glassnode analysis. After reaching a high of $94,000, the at-the-money (ATM) implied volatility (IV) increased, but as price momentum slowed, volatility sellers entered the market, causing IV to decline. The 25 Delta Skew widened again, with a one-week skew at approximately 8.2%, indicating a rise in short-term downside hedging demand. Additionally, short-term downside IV rose with the strengthening price, while upside IV faced pressure at local highs. Although the one-week volatility risk premium remains positive, it has significantly narrowed, reflecting the market's cautious stance amid Bitcoin's price fluctuations.