Bitcoin Surpassing $36,000 Will Cause a New Selloff: Expert

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Major players in the Bitcoin options market are closely monitoring the price movement, especially in anticipation of a potential breakthrough of the $36,000 mark.

If this happens, it could trigger a new round of liquidations. Recent data from Amberdata and Galaxy Digital shows a surge in demand for call options with higher strike prices, indicating a bullish sentiment.

However, this also means that market makers are now exposed to significant net short gamma, meaning they will be forced to buy the asset at a higher price to maintain their delta neutrality if the price surpasses $36,000.

This situation mirrors the events in October, when a similar scenario led to a sudden jump in Bitcoin’s price from $30,000 to $35,000.

This is a significant shift from the beginning of the year, when market makers were primarily focused on maintaining a long gamma position, leading to a high level of volatility.