Bitcoin (BTC) price started the week on a strong note, attacking the $69,000 level. But should traders expect a new all-time high before the end of today’s trading session?
The $69,000-$70,000 area continues to remain a resistance cluster, as evidenced by the sell wall (red line above the BTC price) shown in the chart below.
Similar to most recent price spikes, the move on October 28 was driven by futures market activity and liquidation.
Notice how the funding rate and buying volume increased as the price rose from $67,600 to intraday highs. As was the case with previous attempts, the seller met the request as the price reached the sales wall of $69,400.
BTC/USDT 1-hour chart. Source: TRDR.io
As you can see in the chart below (red vertical rectangle), futures traders open long positions, which drive up the price through highly leveraged short positions, causing a surge in open interest and spot volume as short traders become forced buyers.
BTC/USDT 1-hour chart. Source: Velo.xyz
Bullish traders are essentially trying to trigger enough liquidations to push the price up to the breakout level ($69,000-$71,000), but there is no spot buying demand needed to maintain the desired range.
The view that the absence of spot volume is partly responsible for the fade can be inferred from the absence of a spot premium. Traders buy on major dips in the spot market and push BTC higher or into a range after the price has made a big drop, but this spot buying demand evaporates when it breaks out to the range highs, so the price decreases as traders are unwilling to outbid the sellers. It falls again. .
BTC/USDT 4-hour chart. Source: TradingView
relevant: Why is Bitcoin price stagnant?
When asked about the current Bitcoin price movement, JJ, Head of Cryptocurrency Options and Derivatives at HighStrike, said: “My views haven’t changed much since last week. “We still face a large selling wall that will inhibit a major break above $70,000 from occurring.”
JJ added:
“They are doing a good job of keeping this price action in a slow burnout. This is thanks to the sell wall preventing the +10% daily move from occurring. This is simply a systematic liquidation of the short-term interest trapped here. From July. I don’t think we’ll see any sustained movement on ATH until after the election. You can press there, but it will be short-lived. I think we are less than a week away from the current movement if it is not already over. “Markets will look for reasons to de-risk as we get closer to November.”
This article does not contain investment advice or recommendations. All investment and trading activities involve risk and readers should conduct their own research when making any decisions.