Bitcoin (BTC) may top $37,000 for the first time in 18 months, but traders are casting doubt on BTC’s price action.
Bitcoin price action ‘doesn’t feel right’
After a sharp rise overnight, Bitcoin is trying to break through resistance and head towards the $40,000 mark.
Data comes from Cointelegraph Markets Pro and trading view Showing BTC/USD’s rapid rise after breaking above $37,000 for the first time before Wall Street opened.
Currently, the largest cryptocurrency is up 6.6% in November, surprising some market participants with its strength, having gained nearly 30% in October.
For on-chain monitoring resources Material Indicators, the problem lies in transaction volume.It acknowledged in its report that gains have been strong LatestX postsbut there is no support in the form of strong trading volume at current levels.
“Support is anchored by new plunge protection at $33,000. Meanwhile, resistance at $40,000 has risen to the $42,000 range,” it noted.
The accompanying chart shows BTC/USDT order book liquidity on Binance, the world’s largest exchange.
“There’s no denying that prices have been challenging a number of different top local signals, but there’s also no denying that something doesn’t seem right about this move,” Material Indicators continued.
“The clearest red flag to me is that we see prices rising on lower volumes. That usually doesn’t end well, but we’ll have to see if this time is different.”
Meanwhile, prominent trader Skew revealed that whale selling prices are approaching $40,000 – which may now be a key psychological level in itself.
Bitcoin USD
Bear Whale aka Mega Seller has been selling for high prices over the past few daysThey fell here again
$38K – $40K is probably where they exit the market
— Skew Δ (@52kskew) November 9, 2023
Open interest near 7-month high
On the other hand, financial commentator Tedtalksmacro pointed out that open interest (OI) is increasing, which has formed the backbone of the rapid rise in recent weeks and months.
Related: Bitcoin ETF launch could be delayed by more than a month after SEC approval
The market is heating up again.
Open interest has increased by approximately 15,000 BTC in the past 10 hours.
That’s about $525MM…the atmosphere is slowly coming back. pic.twitter.com/aSMbZxrySO
— tedtalksmacro (@tedtalksmacro) November 9, 2023
Every data from a monitored resource coin glassAs of this writing, Bitcoin futures OI totals over $17 billion, the highest value since mid-April.
Tedtalksmacro wrote in a follow-up analysis: “During a bear market, the market weakens these OI impulses –> a predatory, volatile environment.”
“When the market ignores that and moves higher on rising interest, we know it’s a full-blown bull period. In my opinion, there’s something worth looking at.”
This article does not contain investment advice or recommendations. Every investment and trading activity involves risks, and readers should do their own research when making decisions.
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