There is also an important factor that could prevent it from climbing to levels above $90,000.$BTC
This factor is the market makers who try to maintain price balance by providing liquidity in the crypto market.
Market makers, as liquidity providers who aim to remain independent of the price movements of the traded assets, typically make a profit through the bid-ask spread. Market makers offering Bitcoin options on crypto exchanges such as Deribit are reported to have significant positive “gamma” positions at the $90,000 and $100,000 levels. This means that investors are heavily selling call options at these levels and market makers are taking long positions against these levels.
Market makers with a positive gamma position prefer to buy when the price of Bitcoin falls and sell when the price rises. This strategy creates a balancing mechanism that limits price fluctuations by reducing volatility. As a result, the price of Bitcoin can remain stable in a range between $90,000 and $100,000.
“We are seeing a lot of investors buying options up to $90,000 between November 29 and December 27. However, options in the $90,000-$100,000 range have been sold to market makers,” said Greg Magadini, Amberdata’s director of derivatives. He added that once the market approaches these levels, prices may struggle to break through, but that could change if market sentiment picks up even more.