🚀 BTC Options Market Shows Distinct Gamma Structure
#BTC #Options #GammaStructure #CallBuying #PutSelling #MarketMakers #VolatilityAmplification #ShortOnTop #LongOnBottom #LongGamma #GammaSupport #BuyingOnDips #Hedging #BitcoinOptions #BTCOptions #OnChain #BlockBeats
According to BlockBeats, on-chain data analyst Murphy has analyzed the current structure of the BTC options market, revealing a distinct Gamma configuration characterized by a predominance of Call buying at higher levels and Put selling at lower levels. This creates a typical 'short on top, long on bottom' Gamma structure.
When the price is within the dense Call buying range of $113,000 to $125,000, market makers find themselves in a short Gamma zone. In this scenario, price increases necessitate passive spot buying for hedging, which can amplify upward movements. Conversely, price declines require passive selling, potentially accelerating downward trends. This range is identified as a 'volatility amplification zone,' where market makers' hedging needs are most sensitive, leading to stronger passive buying and selling feedback.
If the price falls below $106,000, market makers enter a long Gamma zone. Here, during price declines, market makers buy spot for hedging, providing a buffer and support in the lower region, known as the 'Gamma support zone.' When prices enter this long Gamma range, market makers' hedging behavior shifts to 'buying on dips,' offering natural support and absorbing lower volatility, leading to a tendency for prices to stabilize. This analysis is intended for educational purposes and should not be considered investment advice.#BTC #Options #GammaStructure #CallBuying #PutSelling #MarketMakers #VolatilityAmplification #ShortOnTop #LongOnBottom #LongGamma #GammaSupport #BuyingOnDips #Hedging #BitcoinOptions #BTCOptions #OnChain #BlockBeats