30s Summary

Bitcoin commenced the week strongly, aiming for a $69,000 value. However, it seems to be facing strong selling pressure keeping it under $70,000. The increase in the price was driven by future trading and forced buyouts, despite sell orders being met at $69,400. It is clear that bullish traders cannot generate enough demand to keep the price over $69,000. Traders are buying Bitcoin during major price drop, but not during price spikes, causing it to fall. According to JJ, head of crypto options at HighStrike, it is likely the market will become more cautious as November approaches.

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Bitcoin’s price started the week strong, aiming for $69,000. But will it hit new highest values by the end of today?

The $69,000 to $70,000 zone seems to be a tough nut to crack with strong selling pressure keeping it in check.

Just like some other recent price spikes, the move on Oct. 28 was driven by trading futures and forced buyouts. Notice how the increase in price came along with a boost in the funding rate and buy volume? Sellers still had their hopeful sell orders met as the price bumped up against the selling pressure at $69,400.

As you can see from the chart below, futures traders who bet on a rising market (long positions) can cause prices to climb by forcing those who shorted the market to buy.

However, bullish traders hoping to set off enough forced buyouts to nudge the price through a crucial level ($69,000 to $71,000) are finding that there just isn’t enough demand to keep the price up there.

Why? Take a look at the trend: traders are snapping up Bitcoin on the spot market whenever there’s a major dip, thus driving BTC up or back into range after big price falls. But they’re not doing this during price spikes, causing the price to fall back down again as sellers take over.

Asking JJ, the head of crypto options and derivatives at HighStrike, about the Bitcoin price trend, he said “Things are pretty much where they were last week. We’re still trying to break through the selling pressure that’s stopped us from hitting $70K and beyond.”

He added:

“They’ve managed to keep the price increase slow and steady, mainly thanks to the selling pressure stopping daily moves of +10% and more from happening — they’ve been slowly whittling down the short interest since July. I don’t think we’ll see any big sustained moves to all-time highest until after the election. We might briefly hit it, but it won’t last long. I think we’ve got less than a week left for this current move to top out if it hasn’t already. As November gets closer, the market will find a reason to be more cautious.”

DISCLAIMER: This article is not investment advice or recommendations. Investing and trading involve risks, so you should do your own research before making any decisions.

Source: Cointelegraph