$BTC

Bitcoin Reenters Liquidity Trap Zone, Reversal Possible After $60K Gamma Clears: 10X Research

Bitcoin’s latest pullback has brought the market back into a structural liquidity gap formed during last year’s powerful post-election rally, potentially setting the stage for a reversal once derivatives-related pressure subsides, according to 10X Research.

Speaking at Consensus Hong Kong, Markus Thielen of 10X Research explained that Bitcoin’s rapid surge following the November 2024 U.S. presidential election created what he described as a “liquidity vacuum.” This vacuum, formed by a sharp, low-resistance price expansion, is now playing a key role in the current downside movement.

The Liquidity Gap Effect

During strong vertical rallies, price often moves too quickly for sufficient trading volume to build stable support zones. As a result, certain price ranges remain structurally thin in liquidity. When markets later retrace into these zones, they can experience accelerated volatility due to the lack of strong bid support.

According to Thielen, Bitcoin is now trading within one of these thin-liquidity areas, which explains the intensity of recent price swings. The market’s retreat is not necessarily a sign of a structural breakdown but rather a return to rebalance previously inefficient price action.

The $60,000 Gamma Factor

A key level to watch, Thielen noted, is the $60,000 zone, where options market positioning—particularly gamma exposure—has amplified downside pressure.

In derivatives markets, high gamma levels near major strike prices can influence spot price movements. When Bitcoin approaches such levels, market makers often hedge their positions, which can intensify short-term momentum. In this case, gamma positioning around $60,000 has contributed to volatility and selling pressure.

However, once this options-related pressure “clears” — meaning expirations pass or hedging flows stabilize — the structural setup may favor a rebound.#USNFPBlowout #TrumpCanadaTariffsOverturned #CZAMAonBinanceSquare #USRetailSalesMissForecast