Bitcoin started 2022 on a different trajectory than the one expected by most traders. Moving sideways for the majority of Q4 last year, the first crypto by market cap seems proposed to more volatility in either direction.
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As of press time, Bitcoin trades at $46,803 with sideways movement in the last 24 hours. BTC’s price returned to its current levels after a rejection around the $50,000 area as 2021 came to an end.
Data from Material Indicators shows strong support below Bitcoin’s current price as $10 million in bids order sit around $45,000 with an additional $36 million distribute between $44,000, $43,000, and $42,000. These levels could become the bulls’ final line of defense in case of further downside.
Above Bitcoin’s current price there is no significant resistance until $59,000 which records $13 million in ask orders. This doesn’t imply BTC will move straight in that direction as buyers still need to display conviction and hold the aforementioned support levels.
According to data from Arcane Research, the Bitcoin market for the derivatives sector has been reset, as $5.8 billion in BTC options expired on December 31st. This represents one of the largest expiry events which led to a 47.8% decline in Open Interest (OI) for this sector. Arcane Research claimed the following:
This (decline in…