Bitcoin (BTC) approached the $44,000 level on December 21st, recouping some of the losses caused by the sharp decline in US stocks on the 20th.

The S&P 500 index closed 1.42% lower, hurting risk assets such as Bitcoin. Some analysts said the correction was delayed because market indicators were in overbought territory and the expiration of certain options created selling pressure.

Its a 0DTE driven plunge in the S&P.

you can see the spread here between bearish 0DTE flow (teal) is identical to that of all flow (purple) informing us that the bulk of flow on this downdraft is all todays expiration. pic.twitter.com/WFGuRY2Cj8

— SpotGamma (@spotgamma) December 20, 2023

Trending tokens such as Bitcoin, Solana (SOL), and Avalanche (AVAX) were hurt by the broader market selloff, but rose early on the 21st in Asian time. SOL has risen 15% in the past 24 hours, extending its multi-week rally to more than 55%.

Traders are optimistic about Bitcoin ahead of the expected approval of spot exchange-traded funds (ETFs) in the US, which could increase demand, and the halving event scheduled for April 2024. Views remain strong.

However, some traders believe that current Bitcoin market indicators are showing signs of cooling after a month of gains, suggesting a period of lower volatility ahead of the holiday season. He pointed out that there was.

“This week we saw a sideways trend with Bitcoin moving between $40,500 and $43,500 and Ethereum (ETH) moving between $2,150 and $2,250,” said SynFutures CEO and co-founder. Rachel Lin said. “Both these coins, and the market as a whole, are beginning to settle back down near their recent highs following a sharp rally during November.”

“One notable effect of this sideways movement is that the RSI (relative strength index), which was in highly overbought territory two weeks ago, has cooled down. “The bar RSI is around 75, down from 82 at the beginning of the month,” Lin added.

RSI is an indicator that calculates the size of an asset’s price movement; when it falls below 30, it indicates that the price of the asset has fallen further than its fundamental value.

｜Translation: CoinDesk JAPAN
｜Edited by: Toshihiko Inoue
｜Image: Shutterstock
｜Original: Bitcoin Climbs Near $44K as US Stocks Nurse Biggest Three-Month Loss