Key Bitcoin Technical Levels After Recent Price Plunge

The price of Bitcoin has become less volatile recently, with the digital currency staying within a fairly narrow range in the past few days.

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Bitcoin’s price, which was around $34,000 as of this report, has remained relatively stable in the past day and earlier today, according to data from Coinbase on the BTC/USDT pair provided by TradingView.

With this recent calmness in the cryptocurrency, traders might be wondering what technical levels to watch for in the future.

Analyst: Investors Look for Sustained Momentum Above $32k

Brett Sifling, an investment advisor from Gerber Kawasaki Wealth & Investment Management, pointed out a particular price level in his analysis. He said that now that Bitcoin has gone beyond the year-to-date high, which was the $32,000 resistance level, investors will be watching for the price to keep moving higher.

Ideally, they want it to stay above that level, even if it goes down a bit, to confirm that the old resistance has become a new support level.

Derivatives Data Indicates Significant Support Levels

Greg Magadini, who is the Director of Derivatives at digital asset provider Amberdata, shared insights related to derivatives data. Derivatives are essentially tools that help manage risk in the market. One type of derivative is an option contract, which grants the holder the right to buy an underlying asset at a set price, although they aren’t obligated to do so.

Magadini explained that option traders are making moves in anticipation of Bitcoin’s price changes, particularly in the end-of-year December expiration cycle. He highlighted that traders have positioned themselves in two key zones. He also noted that there is significant resistance at $37,000 and $45,000.

Additionally, he mentioned that the $40,000 December expiration has a substantial concentration of negative dealer gamma. This is because traders have been purchasing $40,000 call options, expecting the Bitcoin ETF to gain approval and boost the market.

Important: Please note that this article is only meant to provide information and should not be taken as legal, tax, investment, financial, or any other type of advice.

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  • Asad

    Asad is a dynamic and talented cryptocurrency content author who brings a wealth of knowledge and enthusiasm to every article. With a deep understanding of blockchain technology and a passion for digital assets, Asad's writing is both informative and engaging.

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