After a bloody start to the new 2022, including dropping below $40,000, Bitcoin is finally going green. This research will decide if a local bottom has been reached and whether the bulls have found some reprieve.
Bitcoin Market Analysis
On Friday, January 14th, about $690 million in Bitcoin options contracts with a maximum pain level of $44,000 will expire on the Deribit exchange, as illustrated below.
Currently, open interest for puts is quite high, which may be due to uncertainty in the cryptocurrency market due to Federal Reserve Chairman and Senate Banking, Housing, and Urban Committee meetings.
Options traders appear to prefer to hedge their portfolios against the upcoming volatility over the next week. Options market data shows that traders are looking for two important levels – $38K and $45K – as possible support and resistance levels for the upcoming expiry.
BItcoin Price Prediction 2022 | 14th January
Over a previous couple of days, the $40-42K sector acted like a respectable aid degree for bitcoin. Since BTC misplaced the centerline of the Bollinger Bands, the parabolic SAR additionally signaled a downtrend.
On Monday, bitcoin quickly misplaced the inexperienced sector aid however quickly rebounded above this crucial sector.
Since the response to the inexperienced aid sector, the charge has sharply increased (bitcoin is now buying and selling above $43K).
However, the parabolic SAR nonetheless does now no longer verify a momentum trade withinside the charge motion no matter the latest hours` recovery.
If the uptrend continues, Bitcoin may also goal the subsequent resistance on the centerline of the Bollinger Bands over the approaching days, which is around $45.5-46K. [wpdiscuz-feedback id=”dou5rxoajw” question=”Please leave a feedback on this” opened=”0″][/wpdiscuz-feedback]
