Bitcoin BTC USD price prediction December 26: BTC price prediction alert: Why $23 billion Bitcoin options expiry could trigger major BTC USD volatility tomorrow
Bitcoin Price Prediction: Why Does $23.6 Billion in Bitcoin Options Matter to the BTC USD Price?
Murphy explained that according to the Bitcoin System, the temporary support and resistance levels created by the options market may weaken as market makers loosen their hedge positions during the expiration period.
report. This can cause sharp and rapid price movements until investors reposition themselves and a new funding structure is established.
Crypto Crash Prediction: How Could Options Expiry Increase Bitcoin Volatility?
The analysis suggested that if Bitcoin rebounds to its previous low in the $80,000 to $82,000 range, it could create a speculative opportunity for a short-term recovery, according to the Bitcoin System report. Murphy emphasized that strong volatility during periods of low liquidity does not always signal the beginning of a new market crash.
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BTC USD Price Outlook: $80,000-$82,000 Key Support Zone in Focus
At the same time, early signs of an uptrend began to appear on shorter time frames. This signal occurs when the pace of Bitcoin’s price decline is stronger than the rate of capital outflow, indicating the possibility of a correction or temporary rebound within a broader downtrend.
What Do Past Bitcoin Cycles Suggest About a Possible BTC USD Rally?
The Price and Capital Inflow Gradient indicator, which measures the relationship between price momentum and actual capital flows, was used in the analysis. In previous market cycles, sharp price declines with slowing capital outflows were often followed by recovery rallies.
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The report stated that following four bullish trend signals observed during 2021-2022 and 2024-2025, Bitcoin experienced recoveries of various sizes and, in some cases, trend reversals. But given that overall market sentiment is still recovering from the bear market, the analysis suggested that any upside this time around is more likely to be limited and short-term.
FAQ
What’s happening in the Bitcoin market on December 26?
Approximately $23.6 billion worth of Bitcoin options are about to expire, the largest option expiration in history.
Why does expiration of this option matter to the price of Bitcoin?
Large expirations can weaken temporary support and resistance levels, resulting in increased price volatility.
