Bitcoin price opened the week with a strong rise to $66,300, but can the bulls maintain the current momentum?
Much of the Bitcoin (BTC) price rise over the past seven months has been capped by overhead resistance, most recently reaching the $65,000-$66,000 level, where the price has yet to secure a daily close.
The price rally on October 14th put Bitcoin in a similar scenario where the trendline of the descending channel briefly collapsed, but it is yet to be determined whether BTC will end the day clearly above the channel resistance.
BTC/USDT 1-day chart (Binance). Source: TradingView
As with previous rallies, the price rise was driven in part by the futures market, with the activity easy to pinpoint with a surge in funding ratios and open interest accompanying BTC’s pop to $66,300 as short-term traders became forced buyers.
BTC/USDT 1-hour Binance puffs chart. Source: TRDR
JJ, Head of Crypto Options and Derivatives at HighStrike, told Cointelegraph:
“BTC soared as it surpassed the 200-day mark, sparking renewed interest from call option buyers in the options market. The most popular of these strikes was the 75,000 to 100,000 calls in the fourth quarter of this year, as Galaxy Digital’s Kelly Greer noted.”
Option nerds are 75,000 to 100,000 long calls (red bars). Mostly in December, some in October and November. The Deribit strike resulted in approximately 70,000 open interests. Buying increased late last week as swap sellers slowed down, which can be seen in implied volume and skew.
Max 🕯️ pic.twitter.com/e2xHYx7rSA
— Kelly Greer (@kellyjgreer) October 14, 2024
JJ explained from his perspective: “There are many stories driving bullish price action, the most popular of which are Trump’s rise in polymarket odds reaching levels not seen since July, when BTC last hit $70,000, and the recent breakout into the new year. It’s the same. This is MicroStrategy at its best.”
relevant: Analysis shows Bitcoin price has reached $66,000, asking ‘Has Uptober begun?’
When asked whether the rise above $66,000 on October 14 represents a decisive trend change, JJ cautioned that “resistance above the September high still remains due to significant requests piling up on the Coinbase order book.”
“While the stars are pushing for new all-time highs in the fourth quarter, participants should still expect a range-bound market with declining liquidity as long as this demand wall remains.”
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.