Analysis: The options mechanism that breached Bitcoin’s $70,000 support level is reversing—market may rebound

10x Research stated that the options market mechanism that drove Bitcoin below the $70,000 support level is undergoing changes—and may even shift to fuel upward momentum. After BTC fell below $70,000, the negative gamma effect in the options market amplified the decline. Market makers who were short gamma were forced to sell during the downturn, turning a normal pullback into cascading liquidations; Bitcoin plunged as low as $65,705. This mechanism has not disappeared—it has simply shifted to a new critical price level. Currently, the largest concentration of negative gamma positions in the Bitcoin options market lies near the prevailing spot price, representing approximately $1.8 billion in notional value. Any price volatility could trigger hedging activity by market makers, again amplifying price moves. Driven by improving market sentiment indicators, potential Iran-related agreements that could lower inflation risk premiums, and expectations that the next Federal Reserve Chair will adopt a more dovish stance, the options structure previously responsible for Bitcoin’s decline may now be transforming into a catalyst for recovery.