Originally published on: October 14, 2024
Bitcoin enthusiasts were greeted with excitement this week as the price surged to $66,300. However, the big question remains: can the bulls maintain this momentum in the market?
Over the last seven months, Bitcoin’s price rallies have often hit a ceiling at the $65,000–$66,000 level where a daily close has proven elusive. The recent rally on October 14 saw Bitcoin briefly breaking out of its descending channel’s trendline, but the real test will be if it can secure a firm close above the channel resistance.
Analysts pointed out that the rally was partly fueled by activity in the futures markets, evident in the surge in funding rates and open interest as short traders were compelled to buy in at $66,300.
JJ, the head of crypto options and derivatives at HighStrike, noted that there are various bullish narratives circulating the market, such as increasing odds on Trump’s Polymarket and MicroStrategy hitting new year-to-date highs. Despite these positive indicators, resistance remains strong above the September highs, with significant sell orders lining up on the Coinbase order book.
So, is Bitcoin’s recent rally signaling a definitive trend change? According to JJ, caution is advised as significant resistance looms above current levels. It’s clear that investors and traders will be closely monitoring the market to see if Bitcoin can sustain its upward trajectory.
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