Bitfinex: Bitcoin Could Maintain Positive Momentum If It Surpasses $70K Resistance Level
In Brief
Bitfinex notes that as BTC approaches $70,000, it will encounter its first resistance level seen at the Nashville Bitcoin Conference in July.
Bitfinex published its latest market analysis report, indicating that Bitcoin has maintained its upward momentum over the past week, reaching a peak of $69,586 during early trading on October 21st. As it nears the $70,000 threshold, Bitcoin is anticipated to face its initial notable resistance test, a level that was previously encountered over the course of the Nashville Bitcoin Conference in July.
The report highlights a notable correlation between BTC’s price movements and Donald Trump’s election odds, suggesting that the cryptocurrency market is increasingly sensitive to political developments. Investors are particularly focused on how a possible Republican victory could influence future cryptocurrency regulations.
Furthermore, the open interest (OI) in Bitcoin perpetual and futures contracts has soared to an all-time high of more than $40 billion, signaling a rise in speculative activity, Bitfinex notes. While an increase in OI generally points to strong market participation, concerns have been raised regarding the disconnect between this rising OI and Bitcoin’s lower price highs.
This disparity suggests that the current price activity may be driven by leveraged futures positions rather than actual demand in the spot market. However, one key difference this time is that funding rates remain neutral, marking that perpetual market longs are not excessively imbalanced.
Bitcoin Could Maintain Positive Trend If It Surpasses $70,000
The firm notes that though a pullback to recalibrate OI may occur, the overall outlook for Bitcoin remains positive. This is bolstered by macroeconomic factors, encompassing anticipated Federal Reserve rate cuts, increased liquidity in the market, as well as the likelihood of more favorable regulatory conditions for cryptocurrency in the United States.
Analysts note that Bitcoin may continue its positive trend. If it successfully surpasses the $70,000 resistance level and breaks out of its eight-month consolidation phase, it could replicate the performance witnessed in October 2023. Back then it surged past the $30,000 mark without looking back.
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About The Author
Alisa, a dedicated journalist at the MPost, specializes in cryptocurrency, zero-knowledge proofs, investments, and the expansive realm of Web3. With a keen eye for emerging trends and technologies, she delivers comprehensive coverage to inform and engage readers in the ever-evolving landscape of digital finance.
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Alisa, a dedicated journalist at the MPost, specializes in cryptocurrency, zero-knowledge proofs, investments, and the expansive realm of Web3. With a keen eye for emerging trends and technologies, she delivers comprehensive coverage to inform and engage readers in the ever-evolving landscape of digital finance.
