As Bitcoin’s (BTC) Recovery Rally continues, $ 90,000 is now the central level where things can become interesting. The projection is mainly based on the current location of option market manufacturers.

Market manufacturers, also known as dealers or MMS, are responsible for providing liquidity to the order book. They occupy the opposite side of investors’ trades and work to maintain a market-neutral exposure by covering in spot and futures markets. They make money on the difference between what they pay for an asset and how much they sell it to, known as the bite-ash spread.

Deribit Bitcoin options tracked by AmberData show that market manufacturers are “short gamma” for $ 90,000 strike. What this means is that when the Bitcoin price moves closer to this level, market manufacturers need to sell when the spot price falls and buys when it rises to maintain a market-neutral position. These coverage activities could add market volatility.

“Given that negative gamma will still have a significant impact on the market after settlement, Hedging -erection of MMS can further promote price fluctuations,” Griffin Ardern, the lead author of the Blofin Academy and head of Blofin Research and Options, told Coindesk. “But the possibility of upward price movement seems to be bigger for now.”

Gamma represents the change rate in Delta, which in itself measures the sensitivity of an option’s price for changes in the underlying asset price. Keeping short gamma means having a short position in options, which can lead to financial loss, especially during periods of high volatility. So when market manufacturers are short gamma, they have to act in the market direction to maintain a market -neutral book.

The opposite is the case when market producers are long gamma. MOT end of last year, market manufacturers were long gamma for $ 90,000 and $ 100,000, led to consolidation between these levels.

The chart shows Gamma levels for strike prices across the outlet. It is clear that the $ 90,000 strike will remain with the most negative delta after the quarterly settlement due to this Friday.

In other words, dealers’ coverage could add market fluctuations to about $ 90,000.

According to ARDERN, the Gamma profile of BTC after Friday’s outlet will resemble the gold-supported PAXG token.

“After removing the effect of opportunities to be wound up, PAXG has a similar GEX distribution as BTC.