October 5, 2022

Bitcoin Price Analysis: BTC Unable to Reclaim $50K as Bearish Indications Loom

2 min read

Options Market Analysis

Bitcoin cost is now sub $49,000, about 27% below the ATH ($69k). Choices traders set different hedging methods during the previous weeks to safeguard against the marketplace drawback. Next Friday, December 17th, about $630 million worth of bitcoin alternatives agreements will expire in Deribit. The max pain scenario for this expiry is if the rate is at $50K. Calls at 60k strike price have the highest open interest with 1005 contracts. Alternatives traders have sold lots of calls for this strike. They appear to take a look at the 60k strike price as a resistance in the meantime.

Source: Deribit Short-term understood volatility is still greater than indicated volatility. It appears that options traders are not sure of V-shape recovery yet. Source: Laevitas.ch Top instrument OI change throughout the last 48 hours shows that demand for puts due to protection has actually increased for December.< img class="size-full wp-image-157105"src="https://cryptopotato.com/wp-content/uploads/2021/12/img3_btc-3.jpg"alt="img3_btc"width="1200"height="800"srcset="https://cryptopotato.com/wp-content/uploads/2021/12/img3_btc-3.jpg 1200w, https://cryptopotato.com/wp-content/uploads/2021/12/img3_btc-3-300x200.jpg 300w, https://cryptopotato.com/wp-content/uploads/2021/12/img3_btc-3-1024x683.jpg 1024w, https://cryptopotato.com/wp-content/uploads/2021/12/img3_btc-3-768x512.jpg 768w, https://cryptopotato.com/wp-content/uploads/2021/12/img3_btc-3-50x33.jpg 50w"sizes="(max-width: 1200px)100vw, 1200px"/ > Source: Laevitas.ch Technical Analysis Long-term Analysis – Weekly The combination of the weekly chart and RSI indicator does disappoint a positive and promising indication for the mid-term. This RSI index is

below 50, suggesting

bears’greater power – in the market

. According to historic data, whenever this index falls below 50, we have had a down pattern or, at best, a ranging stage in market value action. The hope is for this index to recover and get out of the area.< figure id="attachment_157106" aria-describedby ="caption-attachment-157106"design ="width: 1600px"class ="wp-caption aligncenter "> Source: TradingView Short-term Analysis-Daily The circumstance is bad on the everyday chart either. The long-lasting uptrend in the market, which was formed considering that the COVID crash, has actually been lost. The OBV indication shows comparable conditions to the Apr-May crash. The uncertainty across the monetary markets, because

of the statement of the inflation

rate in the US and Europe, might present some volatility in the coming weeks. Source: TradingView On-chain Analysis The short-term holder’s SOPR(Spend Output Profit Ratio, which estimates sell rate ratio to last time a coin was moved or purchase rate), showing these financiers are selling at a loss. This suggests fear for leading buyers who tend to be sensitive about short-term volatilities.

Source: CryptoQuant The above analysis was complied by @N__E__D__A, @GrizzlyBTClover, and @CryptoVizArt. Data provided by @tsypruyan specifically for CryptoPotato.