November is set to continue the upward trend from October, as Bitcoin kicks off the month with robust gains. BTC today surged, flirting with the $35K mark before confidently taking over it, reaching highs of just above $36K. Despite the growing stability of the market and rising open interest, there’s a concern for a significant liquidation event.
Bitcoin’s Open Interest Holds $40K Hope
In recent weeks, Bitcoin’s open interest has been on an upward trajectory, holding steady despite a shift in trader sentiment due to an extended period of sideways trading. Yet, Bitcoin’s latest surge—which some are labeling a fake breakout—has hit a stop beyond the $36K mark, and now the price is undergoing a downward correction, slipping below $35K.
According to insights from IntoTheBlock, close to 80% of Bitcoin holders remain profitable, even with the BTC’s value dropping below $35K. This sentiment is bullish, with expectations of a price uptick in anticipation of an upcoming ETF launch. Nevertheless, there is a rising concern over the chances of a considerable liquidation that may still be on the edge.
While the market prepares for significant price fluctuations, substantial sell-offs or buy-ins have not occurred yet. Currently, the market is experiencing a period of relative calm. However, this lull is likely temporary. A comeback of rapid market movement could trigger abrupt waves of buying or selling, potentially creating turbulence for Bitcoin.
Should bearish news emerge about Bitcoin’s ETF launch, BTC may quickly lose its recent gains and fall under $30K as profit-earning holders rush to cash in. Nevertheless, such an outcome seems improbable given the market-friendly tone of recent hearings. Moreover, Fed Chair Powell’s remarks suggest a softer outlook on interest rate hikes, creating market speculation of a potential pause. This has prompted a shift from the dollar to riskier assets, benefiting Bitcoin for accumulation.
What’s Next For BTC Price?
Bullish traders made an attempt to push Bitcoin past the $36K mark, but resistance from the bears increased, sending the price into a correction mode. As of writing, BTC price trades at $34,723, surging over 1.3% from yesterday’s rate.
The Relative Strength Index (RSI) has taken a sharp decline due to BTC’s rejection. The indicator trades just above the midline, which could mean that the market may lean toward bears. The critical levels to monitor are $33,400 for a potential downward move and $31,000 on the lower end.
Should the price dip below this support level, the BTC price might fall towards the 200-day exponential moving average, where a robust buying pressure is expected. A close above $36,700 resistance level would indicate that the bullish trend is picking up momentum, possibly leading the price to surge towards the $40,000 mark.