There is a possibility that BTC may soon experience a gamma squeeze, which could push its price to new highs. Over the past week, the call/put ratio has increased to 2:1, with rising long positions on BTC, especially at distant strikes and expirations. Notional volume has also grown significantly.
When a call option is sold, the seller may need to hedge the risk by buying the underlying asset if the price approaches the strike. This amplifies the price rise, as sellers are forced to buy more of the asset to delta-hedge their positions.
A gamma squeeze occurs when call sellers are forced to buy more BTC as the price rises, which further fuels the upward movement. This can lead to parabolic growth and volatile corrections.
Key dates where large option volumes are forming: October 25 (~70k), November 29 (~75k), December 27 (~90k), and March 28 (~100k). Breaking through these strike prices could trigger a gamma squeeze mechanism, potentially pushing BTC to its all-time high (ATH) and even to the $100k level.