Bitcoin has surged to $37,000 for the first time in 18 months. However, traders are expressing doubts about this price movement.
BTC price move “doesn’t feel right”
After sudden overnight gains, Bitcoin is attempting to break through resistance on its way to the $40,000 mark.
In November, Bitcoin is up by 6.6%, surprising some market participants with its strength after gaining nearly 30% in October.
According to Material Indicators, the problem lies in trading volume. Despite the brisk upside, strong volume support is not visible at current levels.
The support is anchored by new plunge protection at $33k and resistance at $40k has moved up to the $42k range.
Material Indicators expressed concern about price appreciation on declining volume and indicated that this doesn’t typically end well.
“The most obvious red flag for me is that we are seeing price appreciate on declining volume. That typically doesn’t end well, but we are going to have to watch to see if this time is different.”
Skew revealed whale selling ongoing toward $40,000 — now likely a key psychological level in its own right.
$BTC
bear whale aka gigantic seller has been selling into price for past few daysthey’re dumping again here
$38K – $40K is probably where they get carried out of the market
— Skew Δ (@52kskew) November 9, 2023
Open interest nears seven-month high
Tedtalksmacro pointed out increasing open interest (OI), which has been driving recent upside moves. Market open interest increased by approximately 15k BTC in the past 10 hours, indicating a slow return of positive vibes.
Market heating up again.
~15k BTC in open interest added in the past 10 hours.
That’s about $525MM USD worth… the vibes are slowly returning. pic.twitter.com/aSMbZxrySO
— tedtalksmacro (@tedtalksmacro) November 9, 2023
According to CoinGlass data, total Bitcoin futures OI stood at over $17 billion at the time of writing — the highest value since mid-April.
“During the bear, the market fades these OI impulses –> a predatory, ranging environment,” Tedtalksmacro wrote in follow-up analysis.
“We’ll know it’s full bull time when the market ignores this and trends higher on higher OI. Something to watch imo.”
Hot Take: The Future of Bitcoin Price Action
The recent surge in Bitcoin price has led to increasing suspicion among traders due to concerns about trading volume and whale selling activity. Open interest has reached a seven-month high, signaling a potential return of positive vibes in the market. However, there is uncertainty about whether this will lead to sustained upward momentum or if it is merely a temporary surge. As you continue to monitor Bitcoin’s price action, it’s important to remain cautious and vigilant as you navigate through these uncertain market conditions.
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