Bitcoin BTC USD price prediction December 26: Bitcoin’s market is focused on a massive options expiry on December 26. This event, the largest on record, involves $23.6 billion in Bitcoin options. Analysts predict this could lead to significant short-term price swings. Traders are watching key support levels around $80,000 to $82,000. Early bullish signals suggest a potential temporary recovery.
Bitcoin BTC USD price prediction December 26: All attention in the cryptocurrency market is focused on Bitcoin’s options expiry scheduled on Friday, December 26, which is expected to be the largest on record. Data analyst Murphy said that around $23.6 billion worth of Bitcoin options will expire on the same day, a development that could lead to heightened short-term volatility in the BTC USD price, as per a report.
Murphy explained that as market makers unwind their hedge positions during the expiration process, the temporary support and resistance levels created by the options market may weaken, as per a Bitcoin Sistemi
report. This could result in sharp and rapid price movements until traders reposition themselves and a new funding structure forms.
The analysis suggested that if Bitcoin revisits its previous low in the $80,000 to $82,000 range, it could create a speculative opportunity for a short-term rebound, as per the Bitcoin Sistemi report. Murphy emphasized that strong volatility during periods of low liquidity does not always signal the start of a new market crash.
Also read: Supercomputers reveal the truth about what happens near a Black Hole
At the same time, early signs of a bullish divergence have started to appear on shorter timeframes. This signal emerges when the pace of Bitcoin’s price decline is stronger than the rate of capital outflows, pointing to the possibility of a correction or temporary recovery within a broader downtrend.
The analysis used the Price and Capital Inflow Gradient indicator, which measures the relationship between price momentum and actual capital flows. In previous market cycles, sharp price declines paired with slowing capital outflows have often been followed by rebound rallies.
Also read: Quote of the Day by Robert Frost: ‘Two roads diverged in a wood and I took the one less traveled by…’ – Life lessons by the four-time Pulitzer winner
The report noted that after four bullish divergence signals observed during 2021-2022 and 2024-2025, Bitcoin experienced recoveries of varying sizes and, in some cases, trend reversals. However, with overall market sentiment still in a phase of recovery from a bear market, the analysis suggested that any upside move this time is more likely to be limited and short term.
What is happening in the Bitcoin market on December 26?
About $23.6 billion worth of Bitcoin options are set to expire, making it the largest options expiry on record.
Why is this options expiry important for Bitcoin’s price?
Large expiries can weaken temporary support and resistance levels, leading to increased price volatility.
(You can now subscribe to our Economic Times WhatsApp channel)
