Bitcoin (BTC) prices rose back above $37,000 on Nov 10 but face potential resistance around the $40,000 level amid declining trading volumes.
BTC gained over 6% in the past 24 hours to reach an intraday high of $37,400. The leading cryptocurrency has added nearly 30% over the past month as part of a broader recovery in crypto markets. However, BTC remains down nearly 70% from its record high of around $69,000 set in November 2021.
Keypoints
- The current bitcoin price is $36,934.73, which is down 1.3% over the past 24 hours.
- The 24 hour high was $37,935.55 and the low was $36,018.89, so the price has traded in a relatively wide range over the past day.
- The trading volume over the past 24 hours was $32.96 billion, which is quite high compared to recent days/weeks. This indicates significant trading activity in bitcoin over the past day.
- Looking at longer term price trends, bitcoin is up 7% over the past 7 days and up over 36% over the past 30 days, indicating a strong upward price trend over the past month.
- Overall, it seems bitcoin remains in a longer term uptrend over the past month but may be seeing some cooling off of its bullish momentum in the very short term over the past 1-2 days.
- The high trading volume may indicate increased volatility in the near term as the market tries to find direction. But the broader uptrend still seems intact at this point absent any major negative news events.
The recent bounce has surprised some analysts who question whether the move is sustainable given the lack of volume driving the gains. As on-chain monitoring resource Material Indicators noted, BTC’s appreciation has occurred on declining volume, which “typically doesn’t end well.”
Indeed, order book data from Binance shows limited liquidity and buying support at current levels between $37,000 and $40,000. This suggests BTC could struggle to firmly break above $40K resistance despite positive momentum.
Whale selling was also noted approaching the $40K level by analytics provider Skew. This indicates larger traders taking profits and distributing BTC near recent highs.
At the same time, BTC futures open interest continues rising and now stands at $17 billion – the highest level since April. Climbing open interest alongside a rally can be a bullish sign, but analysts say the market tends to “fade” such upticks in open interest during bear phases.
BTC remains locked in a ranging, sideways trend between approximately $33K and $40K support and resistance. The rally from $33K shows bulls are eager to buy BTC dips, but a break above $40K is needed to signal a macro shift in trend. Declining volume on the latest BTC bounce also casts doubt over the current rally’s staying power.
The post Bitcoin BTC Price Faces Resistance at $40K Despite Rally Above $37K appeared first on Blockonomi.
