Bitcoin breaks into a $2B options trap that can turn this rally violent around $75,000
Bitcoin is approaching a $2 billion negative gamma cluster at $75,000, which could violently accelerate price action up or down.Summary
Bitcoin has broken above the $70,000 resistance level, currently trading around $74,000, but faces a significant options cluster at $75,000. This level hosts approximately $2 billion in negative gamma, particularly tied to the March 27 expiry, creating a two-way volatility trap. If Bitcoin convincingly breaks and holds above $75,000, dealer hedging could accelerate the rally toward $80,000. Conversely, if the price is rejected at this cluster, the same short-gamma structure could amplify a pullback, potentially driving the price toward the $60,000 floor. This setup stems from dealers selling options while Bitcoin traded in a range, accumulating large short gamma positions at the boundaries. The urgency is heightened by the upcoming expiry, which could either reset the gamma map or solidify the current volatile structure, with macro events serving as potential catalysts for a sharp move.
(Source：CryptoSlate)