Bitcoin Hits $37,000 Mark: Rising Trends and Trader Skepticism Amid Lack of Volume Support
Summary:
Bitcoin (BTC) has reached the $37,000 mark for the first time in 18 months, creating suspicion among traders due to its rapid overnight rise. Despite the swift upward trend, the lack of consistent volume support at these new levels has raised concerns. Additionally, a growing open interest (OI) has been observed which often drives sudden upward BTC movements. However, readers are advised to conduct their own research and understand the potential risks associated with trading.
For the first time since the last 18 months, Bitcoin (BTC) has achieved the $37,000 mark. Nevertheless, this progress has stirred suspicion among traders in reference to BTC's price movement. Following a quick rise overnight, Bitcoin is now positioned to overcome resistance as it makes a beeline toward the $40,000 mark. Notably, BTC/USD has reached out for the $37,000 mark after initially surpassing it before the commencement of Wall Street's trading day.
BTC has seen a growth of 6.6% this November. The largest cryptocurrency has undoubtedly caught market participants off-guard with its robust performance, recording a near 30% rise in October. Material Indicators, an on-chain monitoring resource, has noted a concern with the trading volume. Despite the swift upward trend, consistent volume support is noticeably absent at recent levels.
Material Indicators expressed: “While there's a new plunge protection anchored at $33k support, the resistance at $40k has now shifted to the $42k range.” They also shared a chart showing the liquidity of BTC/USDT's order book on Binance- the largest global exchange. “While the price has indeed been challenging several local top signals, something about this move feels off. The clear red flag is the increasing price amidst decreasing volume. This generally spells trouble but we will have to monitor if this instance proves to be any different.”
Prominent trader, Skew, has highlighted steady whale selling on route to $40,000 — a crucial psychological level in and of itself.
Drawing attention towards the rising open interest (OI) is financial commentator Tedtalksmacro, as it has recently been a driving factor in sudden upward BTC movements. CoinGlass data suggests that Bitcoin's total futures OI are standing over $17 billion currently, the loftiest figure since mid-April.
Tedtalksmacro adds: “During bear periods, the market undermines these OI impulses, cultivating a predatory, ranging environment. It suggests a complete bull phase when the market disregards this and trends upwards amidst increased OI. This is definitely something to keep an eye on.”
Readers are advised to do their own research and acknowledge the potential risk involved in every investment and trading action, as this article does not provide investment guidance or suggestions.
Published At
11/9/2023 1:38:50 PM
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