The last 48 hours have been a roller coaster ride for Bitcoin lovers. From breaking the most-awaited $100K barrier to reclaiming the $96,540 level, the crypto market has seen massive fluctuations in the cryptocurrency’s price. At the time of writing, the biggest cryptocurrency again surpassed the $99,000 level with a 1.23% hike in an hour, according to CoinMarketCap.
Yesterday’s sharp drop in BTC’s value was caused by the massive liquidation of short-term positions. Adding to this liquidation, a total of $2.3 billion worth of BTC options are set to expire today, December 6, 2024, bringing uncertainty to the cryptocurrency market.
According to the crypto analyst on X, Greeks.live the put-to-call ratio for options stands at 1.11, highlighting a preference for put options, which allow holders to sell BTC at a predetermined price.
The analyst writes, “Bitcoin managed to hit $100,000 from zero in a decade which created a legend and Trump tweeted his congratulations, taking crypto from geek to mass.”
The analyst remarked that the cryptocurrency’s “maxpain point” is $97,000 with a notional value of $2.3 billion.
Local #Bitcoin $BTC tops are usually reached around the Short-Term Holder Cost Basis +1 standard deviation. That level currently stands at $112,926! pic.twitter.com/qeLvtIcaX0
— Ali (@ali_charts) December 6, 2024
On the flip side, BTC’s local tops are often observed when its price aligns with the Short-term Holder (STH) Cost Basic plus standard derivation, which is a crucial metric to test market sentiment and potential resistance levels. Currently, the critical level is estimated $112,926, suggesting a potential cap for short-term price movements.
Also Read: US Bitcoin ETFs Finally Surpass Satoshi’s 1.1M BTC Holdings