The Moving Average Convergence Divergence indicator showed a bullish crossover last week; however, the falling green histogram bars indicate fading bullish momentum.
QCP Capital’s report highlighted that although leveraged positioning has come down, the contraction in market depth means squeeze risk in either direction remains elevated.
“Historically, BTC has tended to experience 5 to 7% swings during the Christmas period, a pattern often linked to year-end options expiries rather than fresh fundamental catalysts,” said QCP’s analyst.
Nearly $23.5 billion in BTC options are set to expire, increasing the risk of sharp price swings.