As an analyst with over two decades of trading experience under my belt, I’ve seen numerous market cycles and have learned to read between the lines when it comes to price action. In the current Bitcoin scenario, it seems that we are facing a familiar resistance at the $69,000 to $70,000 zone, a pattern that has repeated itself multiple times in recent months.
Is it possible that Bitcoin’s price, which began the week displaying robustness as it approached the $69,000 mark, could escalate even further, potentially reaching new peak levels by the close of today’s trading?
The $69,000 to $70,000 zone continues to be a resistance cluster, a fact illustrated by the sell walls (red line above BTC price) shown on the chart below.
As a crypto investor, I’ve noticed that many recent price surges, like the one on October 28, are often fueled by futures market activity and subsequent liquidations. In other words, large players in the futures market can significantly impact the spot market prices, leading to swift moves up or down.
As a crypto investor, I’ve observed an intriguing pattern: When the price surged from $67,600 to a high within the day, there was a noticeable increase in funding rate and trading volume, suggesting heightened market activity. Reminiscent of past experiences, this surge was met with sellers cashing out at their desired prices as we encountered a formidable sell wall at $69,400.
According to the graph (marked by a red box), when futures traders take on long positions, they do so with high levels of leverage, leading to an increase in price due to their counterparties having to take up short positions. This situation causes a rise in open interest and trade volume as the short traders are essentially compelled to buy, given the circumstances.
Bullish traders are essentially trying to trigger enough liquidations to push the price through a breakout level ($69,000 to $71,000), but the spot purchasing demand required to hold the desired range is absent.
From the lack of a premium in the spot market, it can be deduced that missing volume during market breaks may contribute to the fading of breakout momentum. When significant price drops occur, traders are seen buying in the spot market at lower prices and pushing Bitcoin higher or back into its range. However, this demand for spot purchases diminishes at breakouts towards the range highs, causing a retracement as traders seem reluctant to challenge the sellers’ strength.
Regarding the recent fluctuations in Bitcoin prices, HighStrike’s head of crypto options and derivatives, JJ, stated that his perspective hasn’t significantly altered since last week. The presence of a substantial sell wall persists, which hinders a major surge beyond $70K and potential higher prices from taking place.
JJ added:
“They’re doing a good job of keeping this price action as a slow burn —thanks in large part to the sell wall preventing any +10% daily moves from happening— it’s just been a methodical clearing of short interest that’s been stuck up here since July. I don’t think we see any sustained moves to ATHs until after the election. Might squeeze there, but it’ll be short-lived. I think we’re on a less-than-week shot clock for this current move to top out if it hasn’t already. The Market will find a reason to de-risk as November gets closer.”
Read More
- GOAT PREDICTION. GOAT cryptocurrency
- CYBER PREDICTION. CYBER cryptocurrency
- LDO PREDICTION. LDO cryptocurrency
- JASMY PREDICTION. JASMY cryptocurrency
- DOP/USD
- BADGER PREDICTION. BADGER cryptocurrency
- MBL PREDICTION. MBL cryptocurrency
- CHAT/USD
- ZK PREDICTION. ZK cryptocurrency
- Yellowjackets Season 3 Reveals First Cast Photos and One of Them is Devastating
2024-10-28 19:51