Bitcoin Price Analysis & Onchain Overview: BTC Starts a Critical Week Amid $50K

The Monthly Technical Analysis: Long-term technical analysis

The market is showing no strength based on the monthly timeframe. Let’s look at the market structure with the indicator and trend lines shown in this chart.

Comparing the current cycle (2021) to the 2017 cycle, we can see that the RSI indicator has a higher slope with a lower slope (marked with green – dynamic line).

The failure of this line during the 2017 bull run signaled the end to the bull run (the vertical red line). The mid-term trend line had been broken in April, creating similar conditions to those seen after the 2017 bull run. It is still unclear if the bullish phase that began in July ended with the new ATH.

The Stochastic RSSI oscillator is currently in the oversold zone. We must wait for the cross between the two lines in this indicator, which was the beginning of the strong upward trend (green vertical line). Another confirmation is the breaking of the downtrend line at RSI (yellow-colored dynamic dashed).

The BTC price appears to be entering a volatile phase before it gains the momentum necessary for an uptrend. This type of uptrend requires either a positive news story or new investors to inject capital.

Short-Term Analysis: The 4-Hour Period

The yellow static area is the main resistance zone on the path to bitcoin recovery. This area combines dynamic resistance and static resistance. It also includes the MA100 line. This resistance was a problem for bitcoin ten days ago. After failing to overcome it, BTC plummeted to $42K (Dec-4). This resistance can be broken to confirm that the downtrend is over.

Analyse Options

On Friday 17 December 21, approximately $662 million worth bitcoin options contracts will expire. Deribit Exchange is reporting that this Friday’s expiration will be the 17 DEC 21. The maximum pain price for this expiry is $50k. Calls with a $60k strike price are the most popular. This strike price has seen a lot of calls being sold.

We can use the December Total volume trend to better understand options traders’ activities. This is filtered specifically for December’s expiries. This month’s P/C Ratio was higher, which means option traders want to hedge against market declines.

The OI top-of-the-line instrument OI changes last week shows lots of calls activities at 60k strike in 31 Dec expiry

Analyse of the On-chain

The BTC hashrate is a fascinating on-chain metric that was worth keeping an eye on in recent weeks. The network gained its hashrate once again after the massive migration of miners to North America just after China banned mining.

This steady and healthy trend reflects the strong conviction of new investors in mining. The new miners don’t react to market sentiment and seem only to want to mine as much as possible. These new miners run the risk of missing out on mining opportunities.

@N__E__D__A and @GrizzlyBTClover compiled the above analysis. Only CryptoPotato data provided by @tsypruyan

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Marla Brooks

Marla Brooks – Financial Analysis My name is Marla Brooks, and I am the mainstream behind the””  for the powerful and most delicate insights into the latest activities in the financial analysis category. I started my journey as an independent financial consultant. I had approximately nine years of experience in this field. I am free soul so; my passion for exploring the world has taken me to the nations across the globe and given me the chance to report for a portion of the best news associations. Currently, I am a full-time editor as experienced in finance and started to use my abilities.

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