- Bitcoin Price Outlook: Bitcoin stabilizes after rejection from a key resistance level:


Bitcoin was retested at the $90,000 mark on Monday, a significant psychological level, then dipped slightly the next day. Bitcoin's price settled around $87,000 on Wednesday. By Thursday, Bitcoin hovered around $87,700.

If the Bitcoin correction continues, the decline could extend toward the main support level at $85,569.

The Relative Strength Index (RSI) is at 43, below the neutral level of 50, indicating increasing bearish momentum. The Moving Average Convergence Divergence (MACD) showed a bullish crossover last week; however, the decreasing green bars suggest waning bullish momentum.

Daily chart of the BTC/USDT pair

On the other hand, if Bitcoin closes above the $90,000 level, the recovery could extend toward the next resistance level at $94,253.
BTC0.18%
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Before00zerovip
- Institutional Demand for Bitcoin Continues to Decline:
Institutional demand continued to decline this week. Data from SoSoValue indicates that Bitcoin spot ETF funds experienced outflows of $175.29 million on Wednesday, marking the fifth consecutive day of withdrawals since December 18. If these outflows persist and intensify, Bitcoin's price could see further correction.

Daily chart of net spot Bitcoin flows into ETFs. Source: SoSoValue

- The Calm Before the Storm:
Data from Deribit shows that Bitcoin options contracts worth $23.47 billion are set to expire on Friday. Bitcoin derivatives traders are heavily focused on high strike prices, with open interest in call options significantly exceeding that of put options, as evidenced by the put-to-call ratio dropping to 0.35, indicating a generally bullish sentiment.

Additionally, the maximum pain price of $95,000 suggests that option sellers will benefit more if Bitcoin's price gravitates toward this level by expiration, as most contracts will expire worthless at this level.

This week, QCP Capital's report highlighted that despite a decrease in leveraged positions, market contraction means that downside and upside risks remain elevated.

QCP Capital analyst said: "Historically, Bitcoin tends to experience 5 to 7% volatility during the Christmas period, a pattern often associated with year-end options expiration rather than new fundamental catalysts."
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Before00zerovip
· 4h ago
Bitcoin price hovers around $87,700 after failing to break the resistance level of $90,000 this week. Market volatility remains high, as Bitcoin options worth approximately $23.47 billion expire on Friday, which could lead to sharp price fluctuations.
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