Glassnode Unveils Gamma Heatmap to Decode Bitcoin Options Flows

Glassnode has introduced a proprietary Gamma Exposure Strike Heatmap designed to track how options dealer positioning evolves across Bitcoin strike prices over time. The analytics firm has positioned the tool as a way for systematic traders to gain a timing advantage when interpreting market structure, particularly as crypto options markets continue to mature.

The launch comes amid rapid growth in Bitcoin options activity, a trend that has increased the influence of dealer hedging flows on short-term price behavior. Traditional gamma exposure, or GEX, snapshots typically show positioning at a single moment. In contrast, the new heatmap visualizes how gamma concentrations develop, migrate, and decay as price fluctuates and options expiries draw closer. This temporal perspective is intended to help traders better anticipate how market dynamics may change rather than relying on static indicators.

Understanding Gamma Exposure and Market Impact

Gamma exposure reflects how aggressively options dealers must hedge as underlying prices move. When dealers are positioned with net positive gamma, they tend to sell into price increases and buy during pullbacks in order to remain delta-neutral. This behavior often suppresses volatility and encourages range-bound trading. When positioning shifts to net negative gamma, the dynamic reverses. Dealers are then required to buy into rising prices and sell as markets fall, reinforcing directional moves and amplifying volatility.

Glassnode’s analysis suggests that visualizing these dynamics over time can clarify why certain price levels act as barriers or magnets. By mapping gamma exposure across strike prices and observing how those concentrations change, the heatmap aims to reveal structural forces that influence whether price action is likely to stall, consolidate, or accelerate.

Insights From Recent Bitcoin Price Cycles

The heatmap highlighted several notable patterns during Bitcoin’s recent market phases. During mid-December 2025, horizontal bands of positive gamma exposure clustered around the $85,000 level. These areas acted as structural resistance, limiting breakout attempts and contributing to choppy, sideways price action. As long as those positive gamma concentrations remained intact, the price struggled to establish sustained directional momentum.

The market environment shifted during the January to February 2026 downturn. The heatmap began to display stronger bands of negative gamma exposure around and below the spot price, signaling a short-gamma regime. In this setting, dealer hedging flows reinforced downward movement rather than countering it, coinciding with a prolonged period of weakness in Bitcoin’s price.

Glassnode’s aggregated Total GEX Over Time metric further illustrated these regime changes. From August through November 2025, predominantly negative gamma exposure accompanied Bitcoin’s decline from near $120,000 to roughly $80,000. Dealer activity during this period tended to amplify selling pressure instead of cushioning the fall. As prices stabilized in December 2025 and early January 2026, gamma exposure shifted into positive territory, supporting consolidation. That stability proved temporary, as a return to negative gamma aligned with renewed downside later in January.

Trading Implications and Strategy Alignment

The firm has outlined practical implications for traders navigating different gamma environments. In positive gamma regimes, mean-reversion strategies tend to align with dealer incentives. Selling rallies and buying dips often prove effective, while breakout attempts frequently lose momentum. When gamma exposure turns negative, the same approach can become risky. In those conditions, momentum-based strategies and positions that benefit from rising volatility may be more appropriate, with reduced leverage and wider risk parameters.

Gamma analysis has gained traction across both traditional and digital asset markets as options volumes increase. The underlying mechanics are consistent across asset classes, as market makers hedge their exposure by trading against gamma, creating structural levels of support and resistance around concentrated strikes.

A Tool for Regime Detection

Glassnode has emphasized that the heatmap is particularly useful for identifying transitions between market regimes. Shifts in total gamma exposure, especially when crossing from positive to negative or vice versa, have historically preceded volatility expansions, breakouts, or the formation of new trading ranges. By highlighting these transitions visually, the tool aims to help traders prepare for changes before they fully manifest in price action.

The heatmap is being made available through Glassnode’s professional platform, with API access offered to systematic funds seeking to integrate gamma regime detection into automated strategies. Whether used by discretionary traders identifying sticky price levels or quantitative teams modeling volatility, the central premise remains consistent: understanding dealer incentives ahead of price movement can offer a meaningful edge in navigating Bitcoin’s evolving market structure.

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