Why Bitcoin's Upside May Be Capped

Recent market dynamics suggest that Bitcoin's price growth may be limited. Following a significant crash, options data indicates that traders are expecting subdued price movements. Market makers, who hold long gamma positions, are likely to counteract rallies by selling during price increases and buying during dips. The downturn triggered a historical liquidation event, eliminating around $20 billion in positions and reshaping trader sentiment. Short-term predictions suggest a potential decrease to $100,000, but analysts maintain a bullish long-term outlook, forecasting a rebound to $130,000 as institutional interest remains strong. Traders are beginning to adjust their strategies as volatility decreases, paving the way for possible price stabilization. Overall, while short-term uncertainty persists, the outlook for Bitcoin remains optimistic due to projected institutional inflows and market corrections that eliminate weaker positions.

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