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    Home » BTC » Bitcoin Price Analysis: BTC Dips, This is the Key Level to Watch

    Bitcoin Price Analysis: BTC Dips, This is the Key Level to Watch

    Author: George Georgiev

    Last Updated Dec 20, 2021 @ 17:44

    All markets are having a hard time during Monday’s trading session and Bitcoin is no exception. The cryptocurrency is down just shy of 2 percent in the past 24 hours while altcoins are mostly in red.

    Option Market Analysis

    The rising cases of the highly transmissible Omicron caused fear in all markets. Investors are worried about lockdowns which may have negative effects on the economy. In the options market, Short-dated implied volatility also increased accordingly to fear.

    Bitcoin dipped below $46k. Traders hedged their portfolios by selling calls and buying puts. Over the previous two days, options traders bought calls for $50k, $55k & $60k strikes for the following year’s expiries. It seems that they are still optimistic about the upcoming months.

    img1
    Chart by Laevitas.ch
    img2
    Chart by Laevitas.ch

    Technical Analysis (short-term)

    After testing the lower Bollinger band on an 18-hour time frame, it seems the price might react to this formed support level. A Bollinger band squeeze can be seen in lower time frames. Therefore, a bullish divergence is forming on the 18-hour chart but is not confirmed yet. It will be confirmed by closing a candle above $49k.

    img3
    Chart by TradingView

    Technical Analysis (long-term)

    14 EMA on 4D Heiken-Ashi has been a good support level for Bitcoin in the long term. The directional movement index (DMI) can underline the strength and direction of a price movement. Bitcoin is below this EMA since breaking it down. Also –DI>+DI, but ADX value suggests a weak trend. In the following days, a pull-back to the EMA can be expected.

    img4
    Chart by TradingVIew

    Onchain Analysis

    Interestingly, the main sell-pressure (~83%) in the last 7D were the coins last moved (bought) at >$45K Purple square aka “Top Buyers.”

    These top buyers almost have 31% of the supply in their possession (blue square). This means we have not seen significant selling pressure from old coin holders.

    img5
    Source tsypruyan
    img6
    Source tsypruyan

    The above analysis was complied by @N__E__D__A, and @CryptoVizArt. Data provided by @tsypruyan exclusively for CryptoPotato.

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    Disclaimer: Information found on CryptoPotato is those of writers quoted. It does not represent the opinions of CryptoPotato on whether to buy, sell, or hold any investments. You are advised to conduct your own research before making any investment decisions. Use provided information at your own risk. See Disclaimer for more information.

    Cryptocurrency charts by TradingView.
    Tags: Bitcoin (BTC) Price
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    About The Author

    George Georgiev
    More posts by this author

    Georgi Georgiev is CryptoPotato's editor-in-chief and a seasoned writer with over two years of experience writing about blockchain and cryptocurrencies. Georgi's passion for Bitcoin and cryptocurrencies bloomed in late 2016 and he hasn't looked back since. Crypto’s technological and economic implications are what interest him most, and he has one eye turned to the market whenever he’s not sleeping. Contact George: LinkedIn

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