As of December 21, 2024, Bitcoin (BTC) is trading at approximately $97,506, reflecting a slight increase of about 0.68% over the previous close.
Earlier this month, Bitcoin surpassed the $100,000 milestone for the first time, reaching a peak of over $103,000. This surge was largely attributed to optimism surrounding regulatory clarity and the anticipated pro-crypto stance of the incoming Trump administration. The nomination of Paul Atkins, known for his favorable view on cryptocurrencies, as the new SEC chair has further bolstered investor confidence.
In the options market, there has been a notable increase in demand for protective puts, indicating that some investors are positioning for potential price declines. This sentiment emerged after Bitcoin narrowly missed the $100,000 mark in late November, peaking at $99,830 before retreating over 8% to a low of $91,377. The upcoming options expiry on December 27, involving approximately $11.8 billion, is expected to contribute to market volatility.
Technical analysis suggests that Bitcoin's dominance in the cryptocurrency market has reached its highest level since March 2021, with the Bitcoin Dominance Index (BDI) hitting 61.39%. This indicates a strong bullish trend, with key support levels identified between $70,000 and $73,000. However, the Relative Strength Index (RSI) readings above 80 suggest overbought conditions, which may precede a price correction.
