Nov 09, 2023

Crypto Whales Puzzled as BTC Price Targets $40K Despite Declining Volume

Bitcoin puzzles traders as BTC price targets $40K despite declining volume
Bitcoin puzzles traders as BTC price targets $40K despite declining volume

Bitcoin (BTC) may have hit the $37,000 mark for the first time in 18 months, but traders are becoming skeptical of the recent crypto price action.

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BTC price move “doesn’t feel right”

After snap overnight gains, Bitcoin is attempting to break through resistance and reach 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 post on X (formerly Twitter), 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 the 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.

Popular trader Skew meanwhile revealed crypto whale selling ongoing toward $40,000 — now likely a key psychological level in its own right.

Open interest nears seven-month high

Elsewhere, financial commentator Tedtalksmacro highlighted the growing open interest (OI) — a factor that has underpinned the recent rapid upsurges in Bitcoin’s price.

Data from CoinGlass showed that the total Bitcoin futures OI had reached over $17 billion — the highest level since April.

“During the bear market, the market ignores these OI impulses –> a predatory, ranging environment,” Tedtalksmacro said in a subsequent analysis.

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