# Bitcoin Morning Breakout of Long-Term Resistance Level, Put Option Liquidations as Primary Driver

On March 17, bitcoin briefly surged above $76,000 in early trading, breaking through the long-term resistance zone (between $73,750 and $74,400) that has hindered bitcoin's upward movement multiple times this year, and driving the broader crypto market higher.

However, some analysts believe this much-watched breakout was not driven by optimistic sentiment, but rather represents a "capitulation of short positions" in the derivatives market.

According to analysis by 10x Research founder Markus Thielen, the current rally is primarily driven by traders liquidating put options with strike prices near $55,000 and $60,000;

These options were established during bitcoin's sharp decline in early February, when prices approached $60,000, and traders actively bought put options to hedge downside risk.

However, as market sentiment stabilized, these options became increasingly unlikely to be exercised as expiration approached, forcing traders to close their positions.

Thielen stated that the primary reason for this phenomenon is that selling or liquidating put options reduces downside hedging pressure, forcing market makers to buy bitcoin to rebalance risk exposure, thereby creating buying pressure that supports the price increase.

Although the capital flows triggered by short position liquidations became the key force driving the price breakout, no significant evidence of call option buying has emerged yet, indicating this rally was driven more by hedging contract liquidations rather than aggressive long position building by bullish traders.

The analysis concludes that when bitcoin broke through the long-term resistance level, it triggered a series of hedging actions by market makers, further amplifying price volatility. This "secondary bullish effect" generated by the mechanism is a "predictable" normal phenomenon.

However, given the current lack of significant call option buying support, the sustainability of this breakout remains questionable. After all, whether this rally represents the complete capitulation of shorts or the beginning of an offensive by bulls, the market is watching closely.

#比特币 # Put Option