Given the options expire on Friday, will Bitcoin end on a big step? (Price analysis)

                                                            Der Dezember war ein schwieriger Monat für den BTC-Preis und verzeichnete laut Bitstamp am 4. Dezember ein Monatstief von knapp unter 42.000 USD.  Für dieses Jahr bleibt noch etwas mehr als ein Tag, und es scheint, dass BTC 2021 unter der Preismarke von 50.000 USD enden wird.

Options market analysis

An important factor that should be taken into account when analyzing the options market, especially in the case of significant developments the maximum pain price.

Max Pain Price is the exercise price that brings the option buyers the maximum loss. The maximum pain theory states that the price of an option tends towards a maximum pain price as the expiration date approaches.

On Friday, December 31st, the Deribit Exchange will see a massive decline with a face value of $ 5.4 billion. The maximum pain price is $ 47,000. While it is hard to speculate about the impact a massive decline will have on the BTC market, you better be careful and take precautionary measures for any potential volatility that may arise immediately afterwards.

Technical analysis

The weekly newspaper

After Bitcoin published the current ATH of $ 69,000 it was quickly rejected and started a bearish move.

If we look at the MACD indicator, we can see a bearish divergence in price which eventually had an impact and caused the price to drop. As can be seen in the graph below, the MACD indicator recently confirmed a reversal in the medium-term uptrend, as well as a reversal that occurred just before the big crash in May 2021 (marked by blue vertical lines).

The daily

Currently, BTC price is below the 100-day moving average line (green line) and is struggling with the 200-day moving average (purple line).

The latter serves as a historically significant support /resistance for the price. The blue trendline is currently the next significant resistance for the price while the yellow trendline could be the next major support.

Further down, the $ 40-41,000 zone is the most robust area of ​​support in this area. If BTC drops below these levels it will move to a lower low, which is a bearish sign, and the path to $ 30,000 can be quick.

The 4 hours

After the recent shakeout, Bitcoin formed a reverse flag pattern (yellow trend lines) and broke it from the top, then a nice pullback to the top trend line – and a breakout was confirmed.

However, the price has also been rejected from the 200MA line and it appears it has started another decline. Currently, the price is battling two major support areas – the blue trendline and the $ 45 to $ 46,000 level.

The above analysis was created exclusively for CryptoPotato by the analysts @greatest_trader, @N__E__D__A and @CryptoVizArt.

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