Bitcoin (BTC) hit a key level at the Wall Street open on November 16 after the mimicked BTC price action sparked a fresh attack to $38,000.
BTC/USD 1-hour chart. Source: TradingView
BTC price hits 18-month high
Data from Cointelegraph Markets Pro and TradingView showed a quick turnaround in Bitcoin, turning higher after a steep decline earlier in the week.
The daily chart thus showed an almost identical pattern to a week earlier, with $38,000 still acting as firm resistance.
Currently at around $37,400, BTC/USD is testing a support zone that analysts say is imperative to maintain.
$BTC 4H
Price in the area of interest now
Bulls should pray here IMHO https://t.co/0wG1NhLJy2 pic.twitter.com/trnnG1hU0D
— Skew Δ (@52kskew) November 16, 2023
Monitoring the resource’s material indicators revealed a preliminary long signal on one of its proprietary trading indicators, revealing that the current price zone was the difference between further rise and debasement.
“Trend prediction suggests that this rally may not be over yet. The $40,000 mark has come into focus, but there is certainly no guarantee that BTC can reach that mark this week. For me, a drop below $35,375 would invalidate the #TradingSignals,” reads part of the X comment.
The first upward push came when US regulators delayed the decision on whether or not to approve various crypto exchange-traded funds (ETFs).
November saw a flurry of rumors about a potential turning point for Bitcoin in the form of the country’s first Bitcoin spot price-based ETF.
While a delay maintained the uncertain status quo, markets had no time for cold feet – a strange move that did not go unnoticed by popular trader Skew and others.
Decent game theory
It would make sense if spot ETFs were approved first and a mix (futures/spot) was more regulated/approved later
However, everything is speculative until it is first approved https://t.co/luQH6AUGRS
— Skew Δ (@52kskew) November 15, 2023
Open interest remains stable during BTC price comeback
Analyzing the market composition, fellow trader and analyst Daan Crypto Trades argued that there is now a more compelling case to stay higher.
Related: $48,000 is now a “reasonable” BTC price target – Filbfilb from DecenTrader
This was due to lower open interest (OI) and funding rates compared to last week’s peaks.
“Although the price is at similar levels to last week, open interest is still significantly lower. Funding rates are also slightly lower,” he wrote that day.
“I think we have a better and healthier base now than we did here last week.”
BTC/USD chart with OI and funding rate data. Source: Daan Crypto Trades/X
This article does not contain any investment advice or recommendations. Every investment and trading activity involves risks and readers should conduct their own research when making their decision.
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