Bitcoin Traders, Get Ready for Action
According to Alex Thorn, Head of Firmwide Research, Bitcoin could see a sharp rally if it breaks through the $35,750 to $36,000 resistance. Why is this key? It's a crucial liquidation barrier for derivatives traders.
If bulls take control and break above, demand in the spot market could drive prices higher.
Many are eyeing the SEC and a potential Bitcoin ETF for the next boost, but Thorn is watching the derivatives market. He believes options traders will be the drivers of the next bull run.
Once Bitcoin breaches $36,000, "gamma squeeze" could occur, making options dealers buy $20m in spot BTC for every 1% upside move, pushing prices higher.
Watch out for a potential rally! Keep an eye on those price levels and the derivatives market.
