According to Cointelegraph: Bitcoin has shown remarkable strength this week, maintaining a tight grip near the $68,000 range as it pushes toward the pivotal $69,000 level. While a surge past $70,000 would mark a significant milestone, traders are questioning if today’s trading session will see Bitcoin break this resistance level.
Sell Walls Continue to Challenge Bitcoin’s Path to All-Time Highs
The $69,000–$70,000 zone remains a formidable resistance area, as sell walls (illustrated by the red line above BTC’s price on the chart) reinforce this cluster. The October 28 rally, driven primarily by futures market activity and liquidations, highlights the challenge: sellers continue to absorb buying pressure as the price touches key resistance, creating a barrier to further gains.
High Leverage Push and Spot Demand Key to Bitcoin’s Rally
The recent BTC/USDT 1-hour chart (Source: TRDR.io) reveals that leveraged positions are a core factor in Bitcoin's upward moves, with futures traders increasing open interest to push past high-leverage short positions. However, the necessary spot purchasing demand to sustain a breakout beyond $69,000 is lacking, leading to retracements each time Bitcoin reaches the resistance zone.
Absence of Spot Premium Limits Bitcoin’s Breakout Potential
Traders are quick to buy in the spot market during major price dips, fueling short-term price recoveries. Yet, spot demand thins as Bitcoin approaches breakout highs, suggesting that current support levels might lack the staying power to sustain a breakout above $70,000. This absence of spot premiums underscores the broader issue: without sufficient spot market support, rallies are likely to fade.
Market Insights: Election Impact and Short-Term Outlook for Bitcoin
Commenting on Bitcoin’s recent price action, JJ, head of crypto options and derivatives at HighStrike, noted that a persistent sell wall continues to suppress Bitcoin’s ability to break $70,000. “They’re doing a good job of keeping this price action as a slow burn," JJ explained, emphasizing that the market may not sustain a push to new all-time highs until after the upcoming US election. As November nears, JJ anticipates increased de-risking, creating a limited timeframe for Bitcoin’s breakout potential.
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