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Volatility expected during the BTC options expiration on December 31st

                                                            In den letzten Tagen des Jahres 2021 kämpft Bitcoin um den Preisbereich von 50.000 $.  Die primäre Cryptowährung steht am letzten Tag des Jahres 2021 vor einem riesigen Optionsablaufereignis;  Daher wird erwartet, dass die nächsten Tage volatil sein werden.

This is what awaits you in this article

Options market analysis

This Friday, December 31st, Bitcoin options contracts worth approximately $ 5.7 billion will expire on the Deribit Exchange.

The face value of all maturities is approximately $ 10.7 billion. Compared to the nominal value of DEC 31, we can call it a massive decline. The “maximum pain” price is $ 48,000. Additionally, for the strike prices of $ 58,000 and $ 60,000, the call sellers are not optimistic about a possible year-end Christmas rally. High volatility is therefore expected in the market in the coming days.

Volatility expected during the BTC options expiration on December 31st, Crypto Trading News

Technical analysis

After the recent decline in the ATH in November, Bitcoin topped the MA-21 line by a 14% daily candle this week.

The momentum indicator is above the zero baseline which could mean that the bulls are gradually returning to the market.

Volatility expected during the BTC options expiration on December 31st, Crypto Trading News

Technical short-term analysis: the 1-hour chart

After its recent daily uptrend, BTC price is now retesting recent short-term support levels in the lower timeframe.

After price declined from the MA200 line in the 4 hour timeframe, it is expected to find support in the static zone (marked by the green area) which has played a significant role since hitting $ 42,000. Any decline towards the levels of USD 48.7,000 to USD 49.5,000 (yellow circle) is considered healthy correction seen to gain the momentum needed before the price rebound continues.

Volatility expected during the BTC options expiration on December 31st, Crypto Trading News

Onchain analysis

The NVT ratio evaluates the Bitcoin network based on the investor volume, as it is on the Blockchain you can see. The NVT ratio is the ratio of the on-chain volume to its Market capitalization, something like a PE ratio.

The NVT price level was a useful BUY / SELL indicator for medium-term investors. If the market price in the past stayed below the NVT price for an extended period of time, it had later proven to be a great opportunity to amass more Bitcoin.

Volatility expected during the BTC options expiration on December 31st, Crypto Trading News

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

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Source: Crypto News Deutsch

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