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Bitcoin Futures Traders Optimistic, But Bearish On-Chain Data Signals Trouble Ahead
The Bitcoin market has been witnessing a tumultuous ride lately, as the price slumped from its psychological $100,000 level to near $94,600. The brief surge in prices following the election of a crypto-friendly president dissipated, and instead, macroeconomic concerns and Trump-inspired euphoria took center stage.
A recent tweet from Greeks.live highlighted the expiration of 150,000 Bitcoin options on December 27th, with a put/call ratio of 0.69 and a max pain point of $85,000. Although calls continue to dominate puts, the overall market sentiment has shifted towards caution due to bearish on-chain data signals.
The BTC/USD pair’s 20-day EMA (red) trendline has been acting as a dynamic resistance since December 19th. Despite a brief foray above this level on Christmas Day, the token was immediately rebuffed and is now trading near $96,300. The failure to flip the EMA into support underscores the challenges facing bulls.
If prices were to break above this EMA resistance level, they could pave the way towards $104,400, a resistance zone aligned with the 0.618 Fibonacci retracement. However, any attempts at crossing this threshold would first need to overcome the $116,700 and $132,000 zones, which have historically served as key obstacles during corrections.
On the downside, the 50-day EMA (purple) serves as the immediate support level. If prices were to breach this zone, they could potentially decline towards $87,400, a critical support level supported by historical buyer interest. A move below this point would see bears target $77,300, another key level supported by strong buying activity.
The volume profile reveals reduced trading activity between $95,000 and $100,000, suggesting that any movements within this range could be swift and volatile. The RSI currently reflects neutral momentum at 47.87.
It is imperative for traders to remain vigilant of these critical levels as the market navigates this precarious juncture.
Source: coinchapter.com
