Bitcoin's $125,000 rally signals rising confidence

Should Bitcoin decisively breach $126,100, attention will shift to $135,000, a level where market makers currently hold a net long gamma position, according to Deribit options data tracked by Amberdata. In such scenarios, market makers typically hedge by trading against the prevailing trend — buying dips and selling rallies — which can dampen volatility and create resistance.

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Bitcoin's rally comes amid heightened geopolitical and economic uncertainty.

(REUTERS FILE)

The final and perhaps most psychologically significant level is $140,000, where the second-most popular call option strike on Deribit holds over $2 billion in notional open interest. High concentrations of open interest often act as price magnets, drawing the asset toward them. However, institutions that sold these calls may actively work to keep prices below this level, add-

ing another layer of resistance.