Is It The Beginning Of Bitcoin’s Uptober Or Will Today’s BTC Rally End Much The same?
Bitcoin price opened the week with a strong push towards $66,300, but can the bulls sustain the current momentum?
For the past seven months, most of Bitcoin's (BTC) price rallies have been above resistance, most recently the $65,000-66,000 level that the price did not find a daily close.
The October 14 price rally puts Bitcoin in a similar situation where the downtrend channel was briefly breached, but it remains to be seen whether BTC will close the day above the channel resistance.
BTC/USDT 1-Day Chart (Binance). Source: TradingView
Similar to previous rallies, the price movement was partly driven by the futures markets and the move is easy to identify with BTC's pop to $66,300 open interest as cash momentum increased and short traders became forced buyers.
BTC/USDT 1-hour Binance perps chart. Source: TRDR
JJ, Head of Crypto Options and Derivatives at HighStrike, told Cointelegraph:
“BTC bounced back above 200 days as it brought renewed interest from call buyers in the options market. The most prominent of these signs is 75K–100K calls for Q4 this year, as noted by Kelly Greer of Galaxy Digital.
Options nerds are long 75k-100k calls (red bars). Mostly December, some October and November too. Around 70k open demands made on Deribit. Buying took place at the end of last week when the twp seller declined, implied by vol and skew.
uptober 🕯️ pic.twitter.com/e2xHYx7rSA
— Kelly Greer (@kellyjgreer) October 14, 2024
In his view, JJ said, “There are many narratives fueling significant price action, the most prominent among them being Trump's rising polymarket fortunes that seem not to have been seen since July when BTC last touched $70,000 and the recent New Year to date. For micro-strategy it has reached its peak.
RELATED: Bitcoin Price Hits $66K As Analysis Asks, ‘Has Uptober Began?'
When asked whether the October 14 rally above $66,000 represented an actual trend reversal, JJ said, “The resistance above the September highs remains because Coinbase's order book has a lot of questions lined up there.
Even though the stars are aligned for a Q4 breakout to new all-time highs, participants will still have to wait for a broad-bound market with liquid sweeps to the bottom until these walls hold.
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.
