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.
$BTC 4H
price in area of interest nowbulls should pray here imo https://t.co/0wG1NhLJy2 pic.twitter.com/trnnG1hU0D
— Skew Δ (@52kskew) November 16, 2023
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.
Decent game theory take
it would make sense for spot ETFs to be approved first & a blend (Futures/Spot) to be more regulated/approved later on
all speculative though till which ever is approved first https://t.co/luQH6AUGRS
— Skew Δ (@52kskew) November 15, 2023
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.
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.
