Bitcoin (BTC) may have tapped $37,000 for the first time in 18 months, but traders are getting suspicious of BTC price action.
BTC/USD 1-hour chart. Source: TradingViewBTC price move “doesn’t feel right”
After snap overnight gains, Bitcoin is attempting to crush resistance on the way toward the $40,000 mark.
Data from Cointelegraph Markets Pro and TradingView shows BTC/USD snatching at $37,000 after initially breaking through prior to the Wall Street open.
Now up 6.6% in November, the largest cryptocurrency is surprising some market participants with its strength, having already gained nearly 30% in October.
For on-chain monitoring resource Material Indicators, the problem lies in trading volume. Upside has been brisk, it acknowledged in its latest X post, but support in the form of strong volume is nowhere to be seen at current levels.
“Support is anchored by new plunge protection at $33k. Meanwhile resistance at $40k has moved up to the $42k range,” it noted.
An accompanying chart showed a print of BTC/USDT order book liquidity on largest global exchange Binance.
“There is no denying the fact that price has been challenging a number of different local top signals, but there is also no denying that something doesn’t seem right about this move,” Material Indicators continued.
$BTC
bear whale aka gigantic seller has been selling into price for past few daysthey’re dumping again here
$38K – $40K is probably where they get carried out of the market
— Skew Δ (@52kskew) November 9, 2023
BTC/USDT order book data for Binance. Source: Material Indicators/X
Popular trader Skew meanwhile revealed whale selling ongoing toward $40,000 — now likely a key psychological level in its own right.
Market heating up again.
~15k BTC in open interest added in the past 10 hours.
That’s about $525MM USD worth… the vibes are slowly returning. pic.twitter.com/aSMbZxrySO
— tedtalksmacro (@tedtalksmacro) November 9, 2023
Open interest nears 7-month high
Elsewhere, financial commentator Tedtalksmacro pointed to increasing open interest (OI) — something which has formed the backbone of snap upside moves in recent weeks and months.
Per data from monitoring resource CoinGlass, total Bitcoin futures OI stood at more than $17 billion at the time of writing — the highest value since mid-April.
“During the bear, the market fades these OI impulses –> a predatory, ranging environment,” Tedtalksmacro wrote in follow-up analysis.
Bitcoin exchange futures open interest (screenshot). Source: CoinGlass
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