September 30, 2022

Following the 3% Spike, Bitcoin Eyes Huge Resistance Area Next (BTC Price Analysis)

3 min read

Despite the reasonably long consolidation phase in the past couple of weeks, the options traders, together with the on-chain metrics, are showing unpredictability. The worry on the macro scale is affecting both the cryptocurrency and stock exchange.

Options Market Analysis

This Friday, January 21st, approximately $538 million worth of Bitcoin options contracts will expire on Deribit. The max discomfort situation is for the cost to be at $43K for this expiration. Require the $44K strike price have the highest open interest. Puts for the $39k strike cost have the highest open interest amongst put alternatives.

Open interest for 21Jan_44k_C has increased because January 11th, and most of them are call buyers. Leading Instrument OI change shows that possibly call option traders with $48K strike cost orders were not optimistic about a boost in the rate above this strike cost ($48K) for this expiration anymore.

Deribits open interest by strike price
Source: Deribit Source: Technical Analysis Due to the worry at the macro level, the cryptocurrency market is showing a good deal of unpredictability. While the BTC cost remained

above$40K, consolidation

continues at the $40K- $43K variety. A lot of the participants think that we are getting in a bearishness. Meanwhile, others think that the bull run is not over yet. We can use technical signs to see previous trends then expect the most possible scenarios. Among these signs is

the Ichimoku cloud. Tenkan-sen (conversion line )crossed down through Kijun-sen(standard )in November on the day-to-day time frame, indicating that the cost is dropping. According to the DMI indication, by moving– DI above+DI, a drop was verified. Then, the$ 40K-$42K zone served as solid support for the past few weeks. For bitcoin to strike the greater costs, Tenkan-sen must come back above the Kijun-sen and+DI >-DI. Otherwise, the$40K-$42K level will

be checked once again. Source: TradingView Short-Term Analysis Bitcoin was moving within a descending channel since December on the 8-hour timespan. It broke out the channel on 12 January for the 2nd time. The chart shows that in

this time frame, the pullback was finished where

the green level acted as great

support. Concurrently, the RSI was supported by the lower band of the Bollinger band. In the meantime, bitcoin is trying to evaluate the red level resistance, which is $44K. Possible resistances are displayed in the chart. Source: TradingView Onchain Analysis One of the well-known on-chain metrics that can map the”Fear”is the Net Unrealized Profit/Loss, which signifies the overall quantity of profit/loss as a ratio. The value of this metric is translated through the ratio of financiers who are in revenue. An increasing trend in value

suggests more financiers are

starting to be in earnings, and a down hair indicates the number of undersea individuals is growing. At the moment, NUPL is approaching the same

level(0.35 )that the marketplace remained in July 2020. This is an ideal description for the obvious unpredictability amongst analysts.< figure id="attachment_165131 "aria-describedby =" caption-attachment-165131"style="width: 1542px "class="wp-caption aligncenter ">

Source: CryptoQuant The technical analysis and options market review is prepared by @N_E_D_A.