Bitcoin rises to nearly $44,000 ─ U.S. stocks suffer their biggest loss in three months.
Bitcoin (BTC) approached the $44,000 level on December 21, recovering some of the losses caused by the plunge in the U.S. stock market on the 20th.
The S&P 500 index fell 1.42%, dealing a blow to risky assets such as Bitcoin. Some analysts said the correction was delayed because market indicators were in overbought territory and the expiration of certain options had created selling pressure.
S&P’s 0DTE-led plunge.
Here we can see that the spread between the bearish 0DTE flows (turquoise) is the same as the spread across all flows (purple), which tells us that most of the flows in this downdraft are expiring today. pic.twitter.com/WFGuRY2Cj8
— SpotGamma (@spotgamma) December 20, 2023
Popular tokens such as Bitcoin, Solana (SOL), and Avalanche (AVAX) were hit by widespread market selling but rose early on the 21st Asian time. SOL is up 15% in the last 24 hours, extending its multi-week rally to over 55%.
Traders are optimistic about Bitcoin ahead of the halving event scheduled for April 2024 and the expected approval of a U.S. cash exchange-traded fund (ETF), which could boost demand. The outlook remains strong.
However, some traders believe that Bitcoin market indicators are currently showing signs of cooling after a month-long rally, suggesting a period of lower volatility ahead of the holiday season. It was pointed out that there was.
“This week we have seen a sideways trend with Bitcoin moving between $40,500 and $43,500 and Ethereum (ETH) moving between $2,150 and $2,250,” said the CEO and co-founder of SynFutures. Rachel Lynn said. “These two coins, and the market as a whole, are starting to stabilize back near recent highs after the sharp rally in November.”
“One notable effect of this sideways move is that the Relative Strength Index (RSI), which was in very overbought territory two weeks ago, has cooled. “The RSI bar is around 75, down from 82 at the beginning of the month,” Lin added.
RSI is an indicator that calculates the magnitude of price movements of an asset. A drop below 30 indicates that the asset’s price has fallen further than its underlying value.
|Translation: CoinDesk JAPAN |Editor: Toshihiko Inoue |Image: Shutterstock |Original: Bitcoin rises near $44,000 for biggest loss in three months as US stock nurses
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