- This upward movement in November has surprised many in the market, especially after the cryptocurrency gained nearly 30% in October.
Bitcoin has reached a significant milestone, crossing the $37,000 mark for the first time in 18 months before dropping slightly to about $36,900. However, traders and market observers are skeptical of this outstanding price action.
Bitcoin’s latest price spike, which saw it surpass $37,000, is now aiming for the coveted $40,000 threshold.
This increase in November has startled many market participants, especially after the cryptocurrency gained about 30% in October.
The lack of sufficient trading volume to back this surge is one area of concern identified by on-chain monitoring resource Material Indicators.
While the price has been swiftly rising, the volume of trading activity has not kept pace. The support level is currently at $33,000, while the resistance level has moved to the $42,000 range.
According to Material Indicators, “there is no denying the fact that price has been challenging a number of different local top signals, but there is also no denying that something doesn’t seem right about this move.”
They drew attention to the red signal of price appreciation on diminishing volume, a pattern that frequently results in bad outcomes.
Meanwhile, famed trader Skew has observed continued whale selling pressure as Bitcoin approaches $40,000, a psychologically significant threshold.
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In addition to price movement, open interest (OI) in Bitcoin futures has increased. According to CoinGlass statistics, total Bitcoin futures OI has hit $17 billion, the highest amount since mid-April.
Tedtalksmacro, a financial commentator, has emphasized the significance of OI in the market’s recent swift upward rise.
During bearish moments, the market tends to fade these OI impulses, resulting in a range and unpredictable environment, he observed.
Many people are excited about Bitcoin’s recent price increase, but traders are wary due to concerns about trading volume and the possible impact of huge whale selling.
Furthermore, the impact of open interest in recent market dynamics complicates the present Bitcoin rise.
Market investors will be watching these aspects closely to see if the present price levels can be sustained.
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