Options market analysis

This Friday, December 24th, Bitcoin options contracts worth approximately $ 684 million will expire on Deribit. The maximum drop price – the price that offers the option buyer the maximum loss – is $ 48,000. The put / call ratio (PCR) is 0.67. Calls with a strike of USD 64,000 have the highest open interest.

The buy / sell volume over the past two weeks shows that sellers of call options with an exercise price of $ 52,000 still see that price as a major drag in this process.

Technical analysis

BTC’s loss of the Senkou Span B of the Ichimoku cloud left the price on the 4th. Now Bitcoin is trading below the Ichimoku cloud, which means that the previous support has now turned into resistance.

The price could approach the Ichimoku cloud in the next few days. The question is, can Bitcoin break out of the clouds like on July 24th, or will the price hit a lower low like on June 15th, 2021?

BTC / USDT daily chart | Source: TradingView

Bitcoin broke out above the short-term descending channel, signaling the end of the correction. It is currently trading at $ 51.2,000, which is just below the critical resistance of $ 52,000.

BTC / USDT 4-hour chart | Source: TradingView

Onchain analysis

After the price fluctuated in the $ 46,000- $ 48,000 range for the past few days, the price finally broke out and moved towards the $ 52,000 level.

Meanwhile, the estimated leverage (average) on all derivatives exchanges is reaching new ATHs. Historically, significant spikes in this metric have resulted in price volatility, causing the majority of the heavily leveraged positions to be liquidated.

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