As Bitcoin (BTC) continues its impressive ascent, recently achieving prices around $111,480.33, market participants are keenly interested in what lies ahead. With this notable surge, several critical price levels have emerged as potential focal points for traders and investors watching the cryptocurrency landscape.
Among these notable thresholds, the first to consider is $126,100. This figure represents the upper boundary of an expanding range pattern that has been forming since mid-July. This level is determined by a trendline that links the highs recorded on July 15 and August 14. If Bitcoin retraces from this price point, it could spark a corrective movement towards the lower boundary defined by the trendline from the lows of August 3 and September 1.
The next significant level is set at $135,000. Analysts are noting that a breakout above the current range could shift focus here, especially considering the current positions of market makers in the derivatives market. According to data from Amberdata tracking Deribit-listed options, market makers are exhibiting a net long gamma position in this area. When holding such positions, it is common for these traders to counteract market movements by buying during dips and selling during rallies. This behavior tends to stabilize volatility, suggesting that should the price approach $135,000, it may encounter some resistance due to this market activity.
Finally, the $140,000 price point draws significant attention, being the second-most popular strike price for call options on Deribit, with an open interest exceeding $2 billion. High open interest signals that a considerable number of traders anticipate that Bitcoin’s price may align closely with this threshold. However, institutions that sold these call options have a vested interest in keeping the price below this strike. As a result, their hedging and trading activities around this level might create notable resistance, complicating upward momentum.
As Bitcoin navigates through these unprecedented price levels, the crypto community will be closely monitoring the developments at these key thresholds. The implications of trading activity around these prices could shape market sentiment in the coming days and weeks. Hence, both seasoned investors and newcomers alike may find it prudent to stay informed as they strategize their next steps in this volatile asset class.
