Has a basis in brain structure - the bed nucleus of the stria terminalis (BST), involved emotional responses and also male sex behavior in rats.
Kruijver et al 2000, area is larger in males than in females and has found to be female-sized in transgender females. People with gender dysphoria have a BST which coordinates with the gender they identify with.
Zhou 1995, dismorphism of the BST fits with the report made by transgender people that they feel, from early childhood, that they were born the wrong sex.