Bitcoin Price Analysis: Volatility Anticipated In The Middle Of Dec-31 BTC Options Expiration

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In the middle of the last days of 2021, Bitcoin is struggling around the $50K rate location. The primary cryptocurrency is facing a huge choices expiration event on the last day of 2021; hence, the next days are anticipated to be unstable.

Choice Market Analysis

This Friday, 31st December, about $5.7 B worth of bitcoin’ choices contracts will expire on Deribit Exchange.

The notional value of all expirations is approximately $10.7 B. So comparing to 31 DEC’s notional worth, we can call it a huge expiry. The ‘max discomfort’ rate is $48k. Moreover, the Call sellers for the $58k & $60k strike costs are not positive about a possible end-of-the-year Santa rally. Therefore, a high level of volatility is expected in the market in the coming days.

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Technical Analysis

Following the recent drop from the ATH embeded in November, bitcoin broke above the MA-21 line by a 14%daily candle light this week. The Momentum indicator is above the zero-baseline, which could signify that the bulls are

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gradually going back into the market. Short-Term Technical Analysis: The 1-Hour Chart Following its current daily uptrend, the BTC cost is now retesting the most current short-term support levels on the lower timeframe.

After getting declined by the MA200 line on the 4-hour timeframe, the cost is expected to find support at the static zone (marked by green area), which has actually played an essential role given that striking $42K. Any drop towards the $48.7 K– $49.5 K levels (yellow circle) will be thought about a healthy correction to acquire the required momentum before continuing the rate healing.

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Onchain Analysis The NVT Ratio values the Bitcoin network utilizing the investor volume as seen on the blockchain. NVT Ratio is the ratio of on-chain volume to its market cap, something like a PE Ratio.

The NVT rate level has been a helpful BUY/SELL sign for mid-term financiers. Historically, whenever market price stayed listed below the NVT price for a prolonged timeframe, later on it had proven to be an excellent possibility to collect more Bitcoin.

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The above analysis was complied by analysts @GrizzlyBTClover, @N__E__D__A, and @CryptoVizArt solely for CryptoPotato.

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