Glassnode Launches GEX Heatmap to Track Bitcoin Volatility Regimes

Glassnode has rolled out a proprietary Gamma Exposure Strike Heatmap that tracks how options dealer positioning evolves across Bitcoin strike prices over time—a tool the analytics firm says gives systematic traders a "temporal edge" in reading market structure.

The release comes as crypto options markets continue expanding, making dealer hedging flows increasingly relevant to short-term price action. Unlike static GEX snapshots that show current positioning, the heatmap visualizes how gamma concentrations build, shift, and decay as price moves and expirations approach.

Why Dealer Gamma Matters for Price Action

Gamma exposure measures how aggressively options dealers must hedge as prices move. When dealers are net long gamma (positive GEX), they sell rallies and buy dips to stay delta-neutral—effectively dampening volatility. Flip that positioning to net short gamma, and dealers must chase price moves, buying strength and selling weakness in a feedback loop that amplifies swings.

According to Glassnode's analysis, the heatmap revealed distinct patterns during Bitcoin's recent moves. Green horizontal bands around $85,000 in mid-December 2025 acted as "gamma walls"—price levels where concentrated positive GEX created structural resistance to breakouts. Price remained pinned in choppy, range-bound conditions while those bands persisted.

The January-February 2026 decline told a different story. The heatmap shifted toward stronger red bands around and below spot price as aggregate GEX turned negative. This short-gamma environment, where hedging flows reinforce rather than resist directional moves, coincided with Bitcoin's extended weakness.

Reading the Regime Signals

Glassnode's Total GEX Over Time chart—which aggregates positioning across all strikes—showed clear regime shifts during Bitcoin's recent history. From August through November 2025, predominantly negative GEX accompanied the decline from $120,000 to roughly $80,000. Dealer flows were amplifying downward momentum rather than cushioning it.

December 2025 into January 2026 saw a shift toward positive GEX as price bottomed and consolidated. Stabilizing dealer flows supported range formation. But late January brought a return to negative territory during renewed weakness.

The practical implications? In positive GEX regimes, mean-reversion strategies align with dealer hedging flows—fading rallies and buying dips tends to work. Breakout attempts often fail. When GEX flips negative, that playbook becomes dangerous. Momentum trades and volatility-long positions fare better; leverage should come down and stops should widen.

The Broader Context

GEX analysis has gained traction across both traditional and crypto markets as options volumes grow. The core mechanic applies universally: market makers hedge by trading against their gamma exposure, creating structural support and resistance at strike concentrations. High GEX levels at specific prices can function as magnets that attract price action or walls that repel it.

Glassnode positions the heatmap as particularly useful for identifying regime transitions—moments when total GEX crosses zero often precede breakouts, volatility expansions, or new trading ranges establishing themselves.

The firm is offering the tool through its professional platform, with API access available for systematic funds looking to incorporate gamma regime detection into automated strategies. Whether discretionary traders hunting sticky support levels or quants building volatility models, the pitch is the same: knowing where dealer incentives lie before price gets there.