{"id":86471,"date":"2023-11-01T16:42:54","date_gmt":"2023-11-01T14:42:54","guid":{"rendered":"https:\/\/forklog.com\/en\/?p=86471"},"modified":"2025-09-13T05:50:21","modified_gmt":"2025-09-13T02:50:21","slug":"opinion-bitcoins-break-above-36000-could-trigger-a-fresh-short-squeeze","status":"publish","type":"post","link":"https:\/\/u1f987.com\/en\/opinion-bitcoins-break-above-36000-could-trigger-a-fresh-short-squeeze\/","title":{"rendered":"Opinion: Bitcoin&#8217;s break above $36,000 could trigger a fresh short squeeze"},"content":{"rendered":"<p>Major players in the bitcoin options market are eyeing a break of the $36,000 level, which could trigger a fresh wave of liquidations. <a href=\\\"https:\/\/www.coindesk.com\/markets\/2023\/11\/01\/bitcoin-could-go-crazy-above-36k-options-data-suggests\/\\\">CoinDesk<\/a> reports.<\/p>\n<p>According to Amberdata and Galaxy Digital, amid the rally of the past weeks, demand for higher-strike call options has surged recently.<\/p>\n<p>As a result, market makers have built up a sizable net short <a href=\\\"https:\/\/www.investopedia.com\/terms\/g\/gamma.asp\\\">gamma<\/a> should the price breach the $36,000 mark.<\/p>\n<p>In other words, market makers would be forced to buy the asset on the spot market as its price rises to maintain <a href=\\\"https:\/\/www.investopedia.com\/terms\/d\/deltahedging.asp\\\">delta-neutrality<\/a>.<\/p>\n<p>According to crypto media, a similar situation in October led to a jump in the price of digital gold from $30,000 <a href=\"https:\/\/u1f987.com\/en\/news\/bitcoin-price-tests-35000-as-rally-resumes\">to $35,000<\/a>.<\/p>\n<p>The current positioning of market makers and its expected impact on the spot price contrasts with the situation at the start of this year, according to media reports.<\/p>\n<p>Back then, major players had a net long gamma \u2014 buying low and selling high on the spot\/futures market to maintain delta-neutrality. This further amplified the squeeze in market volatility.<\/p>\n<p>Alex Thorn, head of research at Galaxy Digital, <a href=\"https:\/\/u1f987.com\/en\/news\/experts-point-to-potential-for-bitcoins-continued-growth\">predicted<\/a> a new wave of <a href=\\\"https:\/\/ru.wikipedia.org\/wiki\/%D0%A8%D0%BE%D1%80%D1%82-%D1%81%D0%BA%D0%B2%D0%B8%D0%B7\\\">short squeezes<\/a> if the price of digital gold reaches the $35,750\u2013$36,000 area. According to his calculations, dealers will need to increase longs by $20 million for each 1% rise.<\/p>\n<p>Earlier, analyst and head of Factor LLC Peter Brandt urged bitcoin traders<a href=\"https:\/\/u1f987.com\/en\/news\/peter-brandt-urges-bitcoin-traders-to-brace-for-a-chop-fest\"> to brace for a bruising<\/a>.<\/p>\n<p>Earlier, Glassnode analysts noted BTC crossing <a href=\"https:\/\/u1f987.com\/en\/news\/glassnode-bitcoin-clears-a-string-of-key-resistance-levels\"> key barriers<\/a> near $28,000, both technically and on-chain in nature.<\/p>\n<p>Prior to that, experts based on assessments of capital flows between hodlers and speculators concluded that the current structure of Bitcoin&#8217;s market bears resemblance to the <a href=\"https:\/\/u1f987.com\/en\/news\/analysts-outline-features-of-bitcoin-price-recovery\">recovery phase after bear dominance<\/a> in 2016 and 2019.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Major players in the Bitcoin options market are eyeing a break of the $36,000 level, which could trigger a fresh wave of liquidations. CoinDesk reports.<\/p>\n","protected":false},"author":1,"featured_media":86472,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"select":"1","news_style_id":"1","cryptorium_level":"","_short_excerpt_text":"","creation_source":"","_metatest_mainpost_news_update":false,"footnotes":""},"categories":[3],"tags":[480,1168,1138],"class_list":["post-86471","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-news-and-analysis","tag-bitcoin-price","tag-crypto-derivatives","tag-opinions"],"aioseo_notices":[],"amp_enabled":true,"views":"23","promo_type":"1","layout_type":"1","short_excerpt":"","is_update":"","_links":{"self":[{"href":"https:\/\/u1f987.com\/en\/wp-json\/wp\/v2\/posts\/86471","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/u1f987.com\/en\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/u1f987.com\/en\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/u1f987.com\/en\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/u1f987.com\/en\/wp-json\/wp\/v2\/comments?post=86471"}],"version-history":[{"count":1,"href":"https:\/\/u1f987.com\/en\/wp-json\/wp\/v2\/posts\/86471\/revisions"}],"predecessor-version":[{"id":86473,"href":"https:\/\/u1f987.com\/en\/wp-json\/wp\/v2\/posts\/86471\/revisions\/86473"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/u1f987.com\/en\/wp-json\/wp\/v2\/media\/86472"}],"wp:attachment":[{"href":"https:\/\/u1f987.com\/en\/wp-json\/wp\/v2\/media?parent=86471"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/u1f987.com\/en\/wp-json\/wp\/v2\/categories?post=86471"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/u1f987.com\/en\/wp-json\/wp\/v2\/tags?post=86471"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}