- Bitcoin faced a challenging hurdle with increasing sell orders between $43,500 and $45,000.
- Bitcoin’s put-to-call ratio and prices declined.
The recent surge in Bitcoin [BTC] The price was a sign of optimism for many investors.
However, as the cryptocurrency community eagerly awaits the potential launch of exchange-traded funds (ETFs), more traders are taking strategic measures to mitigate risks in an evolving market landscape.
Order, order!
Bitcoin was struggling with a large concentration of sell orders at press time, particularly in the $43,500 to $45,000 price range.
This surge in sell orders poses a daunting challenge for buyers and makes it increasingly difficult for taker bids to effectively break through this critical range.
The big question is whether this concentration of sell orders represents a level of resistance in the market.
In response to these market dynamics, traders are adopting cautious strategies to navigate the evolving landscape.
The increased challenge posed by the accumulation of sell orders is leading to a reassessment of the potential impact on Bitcoin’s growth trajectory.
In anticipation of evolving market conditions, traders actively adjust their positions to adapt to prevailing challenges.
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More and more sell orders are being placed between $43,500 and $45,000. It appears to be becoming increasingly difficult for taker bids to effectively break through this range.
Data from @MI_Algos pic.twitter.com/X3dmiSyVkH
— Maartun (@JA_Maartun) December 30, 2023
Look closer
A crucial indicator of market sentiment is the put-to-call ratio surrounding Bitcoin. In recent days, this ratio has seen a slight decline, falling from 0.48 to 0.46.
Further insight into Bitcoin's market dynamics comes from the 25-day delta offset, which has fallen significantly over the past few weeks.
In the context of financial markets, the 25 delta skew refers to the volatility skew for options with a delta of 25%. Delta is a measure that measures the sensitivity of the option price to changes in the price of the underlying asset.
A negative delta skew of 25 indicates a higher probability of a downward price movement.
Source: Velo Data
State of BTC
At the time of the last market update, Bitcoin was trading at $42,544.09, reflecting a slight decline of -1.13% over the last 24 hours. Taking a closer look at on-chain metrics, Bitcoin's MVRV ratio has declined despite remaining relatively high.
Read Bitcoins [BTC] Price prediction 2023-24
This suggests that while the market is experiencing some level of profit-taking, a significant number of addresses are still holding Bitcoin at profitable levels.
Additionally, the growth in daily active addresses indicated continued interest and engagement within the Bitcoin network, which could contribute to its overall resilience.
Source: Santiment
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