Bitcoin marks a new annual high point above $36,800. Let’s see together the future prospects for the BTC price.
Status of Bitcoin (BTC)
After breaking its ascending triangle from above, the price of Bitcoin marked a new high at $35,945. Bitcoin then underwent a downward correction to finally attack once again this last resistance which it finally broke the night of Wednesday, November 8. Indeed, BTC reached $36,843, marking a new annual ATH. Concerning technical indicators, nothing new since the analysis of November 2. Bitcoin is still well above its 50-day and 200-day moving averages crossed and trending upwards. On the oscillator side, they indicate a still bullish momentum despite a significant drop in the latter. As a reminder: the daily RSI of Bitcoin is in the overbought zone. This suggests that Bitcoin is likely to undergo a downward correction or consolidation in the near term.
The current technical analysis was carried out in collaboration with Elie FT, a passionate investor and trader in the cryptocurrency market. Today trainer at Family Tradinga community of thousands of own-account traders active since 2017. You will find Lives, educational content and mutual assistance around the financial markets in a professional and warm atmosphere.
Focus on derivatives (BTCUSDT)
Bitcoin open interest continues to experience an overall increase. Bitcoin’s recent bullish surge has been accompanied by an increase in open interest. After hitting resistance at $36,000, open interest climbed more than 9%, adding more than $670 million in positions to the market. This growth demonstrates the sustained attractiveness of investors at this level.
At the same time, the break above $36,000 caused significant liquidations of short positions, totaling over $21 million. This clearly illustrates the dominance of buyers over BTC.
The BTC Liquidation Heat Map reveals that the price of the cryptocurrency has recently interacted with a zone of high liquidity, located around $36,000. Although Bitcoin appears to have reacted negatively to this area, buying pressure remains prevalent. This suggests that investors do not demonstrate a strong propensity to sell heavily at this level. Now, the high liquidity zone is below the current price of bitcoin, more precisely around $35,000.
Hypotheses for the price of Bitcoin (BTC)
If the price of Bitcoin manages to return above $36,000, we could anticipate a bullish continuation up to the $38,000 level. The next resistance to take into account, if the bullish movement continues, would be $40,000. At this stage, this would represent an increase close to +9%.
If the price of Bitcoin fails to stay above $36,000, we could envisage a return to $35,220. The next level to take into account, if the bearish movement continues, would be around $34,600. At this stage, this would represent a drop close to -5%.
/Widget
Conclusion
Bitcoin continues to rise as best it can. It achieved a new annual high. From a technical point of view, this supports the idea of a continuation of Bitcoin’s uptrend. However, a consolidation or corrective phase has still not been ruled out. Thus, it will be important to carefully observe the price reaction on the different identifiable levels to confirm or not the different hypotheses made. Beware of potential “fake out” and “market squeeze” in each situation. Additionally, let’s not forget that these scenarios are based solely on technical analysis. The price of cryptocurrencies may change more or less quickly, depending on other more fundamental factors.
Receive a summary of the news in the world of cryptocurrencies by subscribing to our new service daily and weekly so you don’t miss anything of the Tremplin.io essentials!
