Analysts Reveal the Price Range Where the Massive Bitcoin Rally Can Pause! Where will it stop?

Bitcoin’in Its record-breaking rally is gaining widespread attention as it approaches the $90,000 mark. However, analysts warn that this rise may face resistance between $90,000 and $100,000 as market makers’ activities cryptocurrency He states that he can keep the price at this level.

Market makers, which are institutions that provide liquidity in exchanges and profit from the difference between buying and selling prices, play a critical role in balancing prices by maintaining a neutral position in terms of the market. Currently, options market makers at crypto exchange Deribit reportedly have significant “gamma” exposure in $90,000 and $100,000 strike options, holding large long positions at those levels.

“When market makers have positive gamma exposure, they tend to hedge by buying the asset when prices fall and selling when prices rise to remain directionally neutral,” said Greg Magadini, Director of Derivatives at Amberdata. Magadini explained that this hedging practice can limit volatility by acting as a buffer against large price fluctuations.

Magadini stated that traders purchased options up to the $90,000 level for the expiration dates of November 29 and December 27, and a significant amount of options were sold to market makers in the range of $90,000 to $100,000. “If prices approach this range, market makers may trade against the direction and potentially limit gains unless further uptrends occur,” he said.

In options trading, gamma represents how much the price of an option changes with the price movements of the underlying asset. For market makers, high gamma exposure means adjusting their positions frequently to stay neutral; This could mean actively selling as Bitcoin’s price rises to the $90,000-$100,000 range.

*This is not investment advice.