Data: Analysis indicates the options mechanism supporting Bitcoin at $70,000 is reversing, and the market may see a rebound.

According to ChainCatcher, 10x Research stated in an article that the options market mechanism that pushed Bitcoin below the $70,000 support level is changing and could even shift to drive an upward move. After BTC fell below $70,000, the negative Gamma effect in the options market amplified the decline. At that time, market makers short on Gamma were forced to sell during the drop, causing the market to shift from a normal pullback to a cascade of liquidations, with Bitcoin hitting a low of $65,705. Now, this mechanism has not disappeared but has moved to a new critical position.

Currently, the largest negative Gamma position in the Bitcoin options market is near the current spot price, amounting to approximately $1.8 billion. If price fluctuations occur, market makers’ hedging actions could once again magnify market moves. Driven by improving market sentiment indicators, the potential for an agreement with Iran to reduce the inflation risk premium, and market expectations that the new Federal Reserve Chair will take a more dovish stance, the options structure that previously contributed to Bitcoin’s decline may now be turning into a force driving a rebound.