Despite the decline in the price of BTC, when it plans to hit $40,000, Bitcoin puzzles traders
Bitcoin (BTC) has topped $37,000 for the first time in 18 months, but traders are getting skeptical of BTC's price action.
BTC price move “doesn't feel right”
After overnight gains, Bitcoin is trying to crush resistance on its way to the $40,000 mark.
Data from Cointelegraph Markets Pro and TradingView shows BTC/USD touching $37,000 after entering Wall Street before the open.
Now 6.6% in November, the largest cryptocurrency has already gained nearly 30% in October, surprising some market participants with its strength.
For on-chain tracking input material indicators, the problem is transaction volume. The upside has been fast, he admitted in a recent post on X (formerly Twitter), but support in the form of strong votes is not seen at their current levels.
“Support is supported by $33k in new conservation. Meanwhile, it rose to the $42k range at $40k resistance.
The accompanying chart shows the liquid publication of the BTC/USDT order book on Binance, the largest global exchange.
“There's no denying that the price has been testing several different domestic highs, but there's no denying that something doesn't feel right about this move,” Material Indicators continued.
“The clearest red flag to me is that we're seeing price appreciation as volume declines. That generally doesn't end well, but we'll have to watch to see if this time is different.”
Notorious trader Skew, meanwhile, revealed that he sold a whale for $40,000 – which may now be a key psychological milestone in itself.
$BTC bear whale aka gigantic seller has been selling off for the past few days.
They throw it here again
$38K – $40K is probably where you'll be out of the market.
— Skew Δ (@52kskew) November 9, 2023
Open demand is almost seven months old.
Elsewhere, financial analyst Tedtalksmacro pointed to a rise in open interest (OI) – something that has been the backbone of the sudden upward movement in recent weeks and months.
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Market heats up again.
15k BTC added in open interest in last 10 hours.
That's about 525mm USD… The momentum is slowly coming back. pic.twitter.com/aSMbZxrySO
— tedtalksmacro (@tedtalksmacro) November 9, 2023
According to data from wealth tracker CoinGlass, total Bitcoin futures OI stood at more than $17 billion at the time of writing – the highest value since mid-April.
“In bearish times, the market will blur these OIA pressures –> predatory, diversified environment,” Tedtalksmacro wrote in a follow-up analysis.
When the market ignores this and trends higher on higher OIA, we know it's time. Something to see imo.
This article does not contain investment advice or recommendations. Every investment and business activity involves risk, and readers should do their own research when making a decision.
