Bitcoin enters make-or-break zone after BTC price snaps back to $38K

Bitcoin News

Bitcoin (BTC) circled a key level into the Nov. 16 Wall Street open after copycat BTC price action produced a fresh attack on $38,000.

BTC/USD 1-hour chart. Source: TradingView

BTC price matches 18-month highs

Data from Cointelegraph Markets Pro and TradingView showed a swift turnaround for Bitcoin, which reversed upward after a precipitous comedown earlier in the week.

The daily chart thus printed a near identical pattern to that seen a week prior, with $38,000 still acting as firm resistance.

Now at around $37,400, BTC/USD was testing what analysts highlighted as an essential support zone to retain.

Monitoring resource Material Indicators, revealing a tentative long signal on one of its proprietary trading indicators, said that the current price zone held the difference between further upside and invalidation.

“Trend Precognition indicates that this rally may not be over yet. $40k has come into focus, but there certainly are no guarantees BTC can reach it this week. For me a dip below $35,375 would invalidate the #TradingSignals,” part of X commentary read.

The initial upside push had come as United States regulators extended a delay to deciding whether or not to approve various crypto exchange-traded funds (ETFs).

November had seen a stream of rumors over a possible watershed moment for Bitcoin being about to hit in the form of the country’s first Bitcoin spot price based ETF.

While a delay preserved the uncertain status quo, markets had no time for cold feet — a curious move that did not go unnoticed by popular trader Skew and others.

Open interest steady during BTC price comeback

Analyzing market composition, meanwhile, fellow trader and analyst Daan Crypto Trades argued that there was now a more compelling case for staying higher.

Related: $48K is now ‘reasonable’ BTC price target — DecenTrader’s Filbfilb

This was thanks to lower open interest (OI) and funding rates compared to peaks over the past week.

“Even though price is at similar levels as last week, the Open Interest is still considerably less. Funding rates also slightly lower,” he wrote on the day.

“I think we got a better and more healthy base now than when we were here last week.”

BTC/USD chart with OI, funding rates data. Source: Daan Crypto Trades/X

This article does not contain investment advice or recommendations. Every investment and trading move involves risk, and readers should conduct their own research when making a decision.

Articles You May Like

Bitwise CIO Bullish On Ethereum ETFs Fueling Surge To Record Highs Above $5,000
Ethereum Retraces: Here’s Why ETH Bulls Must Decisively Break Above $3,500
Ripple CEO Says SEC Lawsuit Is Almost At Its Ends, Here’s The Next Important Date
ETH Derivates Volume Have Flatlined Despite Spot Ethereum ETFs Approval, What’s Going On?
CBOE Global Markets Lists Spot Ethereum ETFs, Confirms Launch Date