Bitcoin (BTC) corrected to lows of $21,864 before aggressive buy-the-dip activity pushed the cryptocurrency back to around $22,800
Bitcoin bears drove the price down to $21,864 before buyers aggressively stepped in to secure a daily close near $22,800.
Although an upward move toward the overhead resistance near $24,000 remains likely, another sharp pullback like yesterday’s could still occur. That outlook is tied to expected volatility stemming from the expiration of 102,000 BTC option contracts on Friday.
According to digital-asset trading desk QCP Capital, this week’s holiday options expiry represents the largest open interest (OI) for Bitcoin options on record. The firm notes that rising OI combined with Bitcoin reaching new highs means the $19,000–$20,000 area “could act as a magnet for the spot market.”
If fresh institutional capital flows into the crypto space, maintaining prices above $20,000 could be critical. Otherwise, BTC may decline toward the 50-day simple moving average (SMA) near $18,335.
BTC/USD
Bears have remained firmly positioned around the $24,000 level and have repeatedly rejected bulls’ attempts to push prices higher.
BTC/USD daily chart. Source: TradingView
As shown on the daily chart, the sharp drop to roughly $21,900 followed several failed break attempts above resistance near the psychological barrier. The long lower wick on the daily candle, however, indicates buyers quickly absorbed the sell-off.
The Relative Strength Index (RSI) has moved down from an extended overbought position and now sits near the neutral line. That suggests bulls still have room to mount another push upward.
Bullish traders are likely to attempt to increase buying pressure and drive BTC/USD toward $25,000–$26,000.
Conversely, a rejection at $22,800 could send BTC to initial support between $20,000 and $19,500. A daily close below that range would risk a shift to a more negative tone and open the path toward the 50 SMA around $18,335.
BTC/USD hourly chart. Source: TradingView
On the hourly chart, BTC/USD is trading below the 100-hour SMA and inside a contracting triangle.
The MACD points to a nascent upward trend but is hesitating, while the hourly RSI has slipped below 50. That indicates bulls could face difficulty holding prices above $22,800.
If the pair fails to reclaim the 100-hour SMA, Bitcoin could drop to initial support near $22,500. A break below that level would expose the primary support at $22,000 and the critical $21,800 zone amid renewed selling pressure.