QCP Analysts Predict Potential Bitcoin Gamma Squeeze as Market Breaks $94,000 Barrier Translation: QCP Analysts Predict Potential Bitcoin Gamma Squeeze as Market Breaks $94,000 Barrier

The first cryptocurrency experienced an approximate increase of 2.6% during the Asian session, echoing the trading trends observed after Christmas. Analysts from QCP Capital attributed the surges in volatility to low liquidity in the holiday market.

Experts noted that the rise was not the result of a cascade of short liquidations, as the volume of closed positions was below $40 million.

The main driving force behind this movement was buying activity in a «thin market.» An additional boost in demand may have been generated by Michael Saylor, the founder of MicroStrategy, who hinted at new Bitcoin acquisitions, which encouraged buyers.

Analysts also recorded a spike in funding rates for perpetual contracts on Deribit, surpassing 30%. Following the expiration of options on October 26, market makers shifted their positions towards «short gamma»: when prices rise, they are compelled to buy assets to hedge, creating a feedback loop.

This mechanism became apparent during the breakout above $90,000. Continued consolidation above $94,000 could trigger a full-fledged gamma squeeze, accelerating the rally.

The support level at $86,000 held firm despite outflows from ETFs and selling pressure during the American session. Demand for protective put options decreased, with major players opting not to roll over December puts with a strike price of $85,000.

QCP warned that it’s premature to draw conclusions about the long-term trend. Following record expiration, open interest fell by 50%. A significant amount of capital remains off the market.

Trading is likely to continue without significant momentum until the end of the year, with volatility expected to return after traders begin reestablishing their positions in January, analysts concluded.

It’s worth noting that experts from Wintermute pointed out the concentration of capital in Bitcoin and Ethereum.