In the final days of 2021, Bitcoin is battling for the $ 50,000 region. The benchmark cryptocurrency faces a huge option expiration on the last day of 2021; Therefore, the following days are expected to be more volatile.
Analysis of the options market
This Friday, December 31st, Bitcoin options contracts worth approximately $ 5.7 billion will expire on Deribit.
The face value of all maturities is approximately $ 10.7 billion. Compared to the face value of December 31st, we can call it a long expiration date. The maximum drop price – the price that offers the option buyer the maximum loss – is $ 48,000.
In addition, sellers of call options with a strike of $ 58,000 and $ 60,000 are showing uncertainty about the year-end Christmas rally. High volatility in the market is therefore to be expected in the coming days.
After hitting the ATH in November, BTC fell along with the 10-day EMA, trading as high as $ 42,000.
BTC has since bounced back and broke out across that line on December 23rd. The price confirmed this as support yesterday, indicating a continuation of the uptrend.
MACD has formed a bullish cross and is rising. The RSI also rises and reaches the level of 50. Both favor a continuation of the upward trend.
There is a strong resistance area at $ 55,557 – $ 58,783 created by the 0.5-0.618 Fib resistance area and the horizontal resistance.
Hence, BTC could rise before reversing into this zone.
BTC / USDT daily chart | Source: TradingView
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Disclaimer: This article is for informational purposes only, not investment advice. Investors should research carefully before making a decision. We are not responsible for your investment decisions.