The price of Bitcoin remains in a downward trend as we approach the last Federal Reserve Board meeting for the year. The value of the king cryptocurrency has decreased by 1.05% in the previous twenty-four hours and by 1.66% in the last seven days at the time this article was written.
After its last weekly close, the Bitcoin-US Dollar exchange rate showed almost little upward momentum before trading opened on Wall Street on December 12.
The most significant cryptocurrency is still trading within a rather small range, and market observers are becoming increasingly eager for new triggers to drive price action.
Traders are now in a state of uncertainty, not knowing how to do business in such a market. It would be prudent for them to investigate the options markets in order to determine whether Bitcoin will eventually succumb to the negative news stream.
Analyst shares opinion on BTC Max pain point
Although it is
reasonable to conclude that a new drop in the price of Bitcoin would force many hodlers to reevaluate their investment approach, it is still unclear whether this bear market would be similar to those that preceded it or not.
In Bitcoin’s past history, bear market lows were accompanied by at least 60% of BTC supply trading at a loss. This was the case when the market was at its lowest point. Up to this point, the market has almost, but not entirely, followed this trend.
However, as analyst Mags made clear in his Twitter post, this doesn’t suggest that the real maximum pain point is just around the corner. Mags is a cryptocurrency trader and technical analyst and claims to have held Bitcoin since 2016.
What is the maximum sore point?
The “max pain”
or “max pain point” is the surprising price point at which the largest number of options contracts are currently active and the price at which the asset would result in losses for most option holders after expiration.
Simply put, “maximum pain” refers to the time when option buyers risk losing the most money. On the contrary, option sellers could benefit the most.
In the words of Mags:
“$10k – $14k won’t be the ultimate pain for the majority because most of you are prepared for it! The real maximum pain is the price that moves within a range of $500 per month. ”
He also said that most people would lose a significant amount of money due to excessive trading within a flat range of 2%, adding that “as long as BTC does something (in any direction), we are good.”
Meanwhile, as 2023 approaches, cryptocurrency enthusiasts are guessing what the lowest potential price for cryptocurrencies would be. The failure of the FTX exchange further aggravated Bitcoin’s woes.
Some experts predict that by 2023, the price of Bitcoin could unexpectedly drop to $5,000. If that happens, its current price of $16,900 would be reduced by another 70%.
The decline or success of the king of cryptocurrencies will be affected by inflation, interest rates, and the supposedly coming recession. As we enter the year 2023, we can only hope that they will become lower.
Conclusion
The claims of the Mags analyst have been widely confirmed by the crypto community. Some others hope that Mags’ prediction will come true so that they can wait until late to invest in the leading cryptocurrency.
Interest in Bitcoin’s future performance among community members seems to be high. Where does it go, up or down?
