Bitcoin Enters $65,000-$70,000 Negative Gamma Zone, Leaving Downside More Exposed
Summary
- Glassnode said Bitcoin is trading in a negative gamma zone between $65,000 and $70,000.
- In that range, dealers' hedging activity can amplify short-term price volatility, with resistance forming near $72,000.
- It added that support on the lower end is relatively thin, leaving the downside more vulnerable, and that downside volatility could increase if momentum weakens.
Forecast Trend Report by Period
Bitcoin has entered a negative gamma environment, a setup that can amplify volatility within a narrow trading range, according to on-chain analytics firm Glassnode.
Glassnode wrote on X on April 7 that Bitcoin is trading in a negative gamma zone between $65,000 and $70,000.
In that range, dealers' hedging activity can magnify short-term price swings. Resistance is forming near $72,000, while support below is relatively thin, leaving the downside more vulnerable.
If momentum weakens, downside volatility could increase further, Glassnode added.
Negative gamma refers to an options-market structure in which dealers must adjust positions in the opposite direction of price moves. That can trigger additional buying when prices rise and additional selling when they fall, exacerbating volatility.
Minseung Kang
minriver@bloomingbit.ioBlockchain journalist | Writer of Trade Now & Altcoin Now, must-read content for investors.
