Bitcoin (BTC) prices have surged back above $37,000 on Nov 10, but they might encounter resistance around the $40,000 level due to declining trading volumes.
Key Points
The current bitcoin price is $36,934.73, down 1.3% over the past 24 hours.
The 24-hour high was $37,935.55 and the low was $36,018.89, indicating a relatively wide trading range in the past day.
The trading volume over the past 24 hours was $32.96 billion, suggesting significant trading activity in bitcoin during that period.
Looking at longer-term trends, bitcoin has seen a 7% increase over the past 7 days and a 36% increase over the past 30 days, showing a strong upward trend over the last month.
Overall, it seems bitcoin remains in a longer-term uptrend over the past month but may be seeing some cooling off of its bullish momentum in the very short term over the past 1-2 days.
The high trading volume may indicate increased volatility in the near term as the market tries to find direction. But the broader uptrend still seems intact at this point absent any major negative news events.
Despite the recent bounce, some analysts are skeptical about whether it is sustainable given the lack of volume driving the gains. BTC’s appreciation has occurred on declining volume, which “typically doesn’t end well.”
Data from Binance shows limited liquidity and buying support at current levels between $37,000 and $40,000. This suggests BTC could struggle to firmly break above $40K resistance despite positive momentum.
Analytics provider Skew noted whale selling approaching the $40K level, indicating larger traders taking profits and distributing BTC near recent highs.
BTC futures open interest continues rising and now stands at $17 billion – the highest level since April. Climbing open interest alongside a rally can be a bullish sign, but analysts say the market tends to “fade” such upticks in open interest during bear phases.
BTC remains locked in a ranging, sideways trend between approximately $33K and $40K support and resistance. The rally from $33K shows bulls are eager to buy BTC dips, but a break above $40K is needed to signal a macro shift in trend. Declining volume on the latest BTC bounce also casts doubt over the current rally’s staying power.
Hot Take: Bitcoin BTC Price Faces Resistance at $40K Despite Rally Above $37K
The recent surge in Bitcoin prices above $37,000 is facing potential resistance around the $40,000 level due to declining trading volumes. This indicates that while there has been positive momentum, there are concerns about sustainability and breaking above key resistance levels. Analysts are also noting limited liquidity and whale selling approaching these levels, casting doubt on the staying power of this rally.
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