Bitcoin couldn’t hold on to any gains above $ 50,000, and the price then dropped to $ 45,000. The cryptocurrency is now trading at around $ 47,000, but the Fed’s next FOMC meeting tomorrow seems to be causing some sort of fear in the markets.
Option Мarket Аnalysis
Likely because of the upcoming Federal Reserve’s decision on the interest rate on December 15th, the short-term bearish sentiment in the crypto market prevailed. After a sharp drop on December 4th for Bitcoin, it moved higher to reclaim $50k on December 12th.
At the moment, the price of bitcoin is around $ 47,000. The last two weeks’ buy / sell volume filtered for December expirations shows that many $ 60,000 strike calls are sold. This means that options traders are not bullish on the short term. The bias to short-term maturities indicates downside concerns.
Long-term Analysis (Weekly)
On the weekly time frame, the yellow trend line has played a very important resistance/support role in the price history. During the April top, the huge sell-off was in response to this line.
The reaction to the blue trendline is also interesting. Those two lines now intersect at $ 40,000 and drop below that level, which would illustrate the power of bears, which means it won’t be easy to get it back.
Short-term Analysis
The 4-hour timeframe also does not have a good structure. The bearish trend line and Ichimoku cloud are on the way of Bitcoin to go up and caused prices to form lower low and lower high. Meanwhile, the green candles were weak. The market still seems to be in a state of fear, and tomorrow’s meeting of the Federal Reserve may determine the direction of the trend in the short term.
Chain analysis
The classic story of the short-term holder (SHT) selling at a loss is still relevant today. As expected, the major sellers over the past seven days were the SHT holders. About 60% of these sellers had a cost base between $ 49 and $ 69,000 (purple). The selling pressure was mainly absorbed at $ 47-49K (pink).
