BTC Hits All-Time High Daily Close, Eyeing $110K as the Next Target

While bitcoin (BTC) operates around the clock, its trading candles open and close daily, akin to the foreign exchange markets. According to recent TradingView statistics, the closing candle on Tuesday reached $106,830 (UTC), marking the highest daily closure recorded.

This surge in value was spurred by a significant influx of investor capital into spot exchange-traded funds (ETFs), driven by turbulent movements in bond markets that raised alarm about the financial stability of key global economies, including the U.S.

Experts mentioned last week that the escalating fiscal debt issues could positively impact BTC as well as other assets like gold.

The Coinbase Bitcoin Premium Index, which indicates the price disparity between Bitcoin on Coinbase Pro (USD pair) and Binance (USDT trading pair), remained in positive territory, showing sustained buying interest from investors in the U.S.

With this upward trend continuing, the crucial price level to monitor now stands at $110,000. Insights from Deribit’s BTC options market, analyzed by Amberdata, reveal that market makers are holding a significant net “negative gamma” at the $110,000 price point.

Market makers with negative gamma typically adjust their positions to hedge in accordance with market movement to keep their overall exposure delta neutral. This behaviour intensifies both bearish and bullish market movements.

Put simply, an upward break above the $110,000 level could further accelerate the ongoing rally. The options market has expanded considerably over the last five years, often contributing to increased volatility during hedging by market participants.