Bitcoin soared to around $35200, reaching a new 17 month high.Part of the reason for the increase is speculation about the exchange traded funds for Bitcoin spot prices in the United StatesThe rapid breakthrough of resistance levels of $30500, $31500, and $33000 has surprised many market observers
- Bitcoin soared to around $35200, reaching a new 17 month high.
- Part of the reason for the increase is speculation about the exchange traded funds for Bitcoin spot prices in the United States
- The rapid breakthrough of resistance levels of $30500, $31500, and $33000 has surprised many market observers.
The cryptocurrency world has gone through a roller coaster week, with Bitcoin (BTC), a profligate digital asset, gradually approaching the ambitious $35000 mark. However, every high point brings a question: is a pullback coming soon?
Breaking the ceiling and exceeding expectations
When Bitcoin soared and reached a 17 month high of nearly $35200, the enthusiasm of cryptocurrency enthusiasts surged.
This enthusiasm is mainly driven by rumors and speculation that the United States is about to approve Bitcoin spot price exchange traded funds. The market, usually known for its unpredictability, seems to be depicting a clear upward trend.
However, the fact that Bitcoin has skyrocketed is not only noteworthy. It shattered one level of resistance after another with absolute speed and determination.
Leading monitoring resource MaterialIndicators explained this unexpected blitzkrieg, emphasizing how the market effortlessly broke through the resistance level it has been holding for 18 months.
Although the markings of $30500, $31500, and $33000 are expected to pose significant obstacles, they were almost easily abandoned.
The $30600 buying wall of $87 million further supported this radical rebound, laying the foundation for the transition from a strong support level to a resistance level.
Journeys from $32000 to $35000 are often fraught with danger and liquidity issues, almost resembling a brisk walk in the park. But just then, a shadow appeared. With the withdrawal of a large amount of bidding liquidity, the timing for potential market pullbacks is ripe.
Oversaturation of market optimism?
Through in-depth research on its mechanisms, certain trends have emerged, suggesting that there may be dark clouds on the sunny horizon of Bitcoin. A clear danger signal is that the financing rates of various exchanges are overwhelmingly positive.
In layman's terms, it seems that most traders are very optimistic, betting on the continued rise of Bitcoin.
Many voices seeking insights, CryptoBullet, provide critical perspectives on this. He hinted that market makers may take action to clean up excess funds and eliminate those who later entered optimistically.
In the two days of Bitcoin's crazy rise, the short liquidation amounts reached $161 million and $48 million, respectively.
The scenarios set by these numbers, combined with different views on financing rates, indicate that the market may be on the brink of overconfidence and be on the verge of collapse.
External push pull
As Bitcoin continues its dramatic dance, the Dollar Index (DXY) is not idle. The index rose to 106, marking a recovery, soaring 0.5% from its previous position.
Nowadays, for those with extensive experience in the cryptocurrency field, DXY and Bitcoin have a long history, but often develop in the opposite direction. But this dance seems a bit different. The response to the trend of the Bitcoin US dollar index is more chaotic, rather than carefully designed.
To take a step back, the entire story may soon take another turning point. Famous macro analyst James Stanley emphasized that the upcoming personal consumption expenditure (PCE) data for October 26th may change the US dollar index in the short term.
The November 1st meeting of the Federal Open Market Committee is also about to be held, during which key decisions regarding the Federal Reserve's interest rate policy will be announced.
Although the recent surge in Bitcoin has left many people in awe, it is crucial to approach this rebound with optimism and caution. As history has shown, in the world of cryptocurrencies, gains can also fall - sometimes quite quickly.
At present, it remains to be seen whether Bitcoin will continue to rise or whether there may indeed be a pullback.
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