bullish

Bitcoin

when

View

<p>Bitcoin (BTC) showcased trading activity tightly clustered around several key liquidity levels derived from previous day’s price actions. </p> 
<p><a href="https://www.thecoinrepublic.com/2024/11/01/bitcoin-puell-multiple-back-to-1-is-this-runup-to-new-btc-ath/">BTC</a> oscillated primarily between the previous day’s high and the aggregation of the previous day’s open (pdOpen) plus its equilibrium (pdEQ) price. </p> 
<p>These levels highlighted crucial support and resistance areas, influencing trader decisions. Traders utilized these benchmarks to identify high reward-to-risk entry points. </p> 
<p>It helped them set precise take-profit and stop-loss placements, optimizing trading strategies in response to Bitcoin’s volatility. The presence of Liquidity Levels, both for longs and shorts, further enriched the landscape for tactical trades.</p> 
<figure class="wp-block-embed aligncenter is-type-rich is-provider-twitter wp-block-embed-twitter">
 <div class="wp-block-embed__wrapper"> 
  <blockquote class="twitter-tweet" data-width="550" data-dnt="true">
   <p lang="en" dir="ltr">Previous day levels, when aligned with LiqLevels, can highlight key support and resistance zones.<br><br>Right now, <a href="https://twitter.com/search?q=%24BTC&amp;src=ctag&amp;ref_src=twsrc%5Etfw">$BTC</a> is trading between the previous day’s high (pdHigh) and the combined levels of the previous day’s open and equilibrium (pdOpen + pdEQ).<br><br>Utilize these levels for… <a href="https://t.co/0PgFMnHa6T">pic.twitter.com/0PgFMnHa6T</a></p>— Hyblock (@hyblockcapital) <a href="https://twitter.com/hyblockcapital/status/1854983111857287434?ref_src=twsrc%5Etfw">November 8, 2024</a>
  </blockquote>
  <script async src="https://platform.twitter.com/widgets.js" charset="utf-8"></script> 
 </div>
</figure> 
<p>In fact, the short low liquidity levels, marked alongside the pdHigh, provided potential short-sell triggers as Bitcoin approached these upper bounds.</p> 
<p>Additionally, the stability around pdEQ suggested a consolidation phase, potentially setting the stage for a more significant price move. </p> 
<p>Should Bitcoin break beyond these established levels, it could trigger a new trend direction, inviting traders to adjust their positions accordingly.</p> 
<p>The precise mapping of these levels allowed traders to execute strategies with enhanced accuracy, leveraging historical price behavior to forecast future movements.</p> 
<h2 class="wp-block-heading" id="h-long-term-realized-cap-impulse"><strong>Long-Term Realized Cap Impulse</strong></h2> 
<p>As at press time, Bitcoin was positioned at what was marked as a ‘Decision Zone’. Bitcoin Long-Term Realized Cap Impulse highlighted significant supply and demand dynamics over extended periods. </p> 
<p>Bitcoin interaction with crucial decision zones, showed that previous interactions have either led to major bullish runs or established strong resistances that capped price advances.</p> 
<p>Where Bitcoin consistently found buying interest, marked the levels as floors during sell-offs. In contrast, resistance zones showed where selling pressure intensified, stalling upward movements and sometimes reversing trends. </p> 
<p>Bitcoin’s price was right at a decision zone similar to past moments that either initiated new bull cycles or confirmed bearish trends.</p> 
<div class="wp-block-image"> 
 <figure class="aligncenter size-large">
  <img loading="lazy" decoding="async" width="1024" height="576" src="https://www.thecoinrepublic.com/wp-content/uploads/2024/11/image-258-1024x576.png" alt="" class="wp-image-822337" srcset="https://www.thecoinrepublic.com/wp-content/uploads/2024/11/image-258-1024x576.png 1024w, https://www.thecoinrepublic.com/wp-content/uploads/2024/11/image-258-300x169.png 300w, https://www.thecoinrepublic.com/wp-content/uploads/2024/11/image-258-768x432.png 768w, https://www.thecoinrepublic.com/wp-content/uploads/2024/11/image-258-1536x864.png 1536w, https://www.thecoinrepublic.com/wp-content/uploads/2024/11/image-258-150x84.png 150w, https://www.thecoinrepublic.com/wp-content/uploads/2024/11/image-258-696x392.png 696w, https://www.thecoinrepublic.com/wp-content/uploads/2024/11/image-258-1068x601.png 1068w, https://www.thecoinrepublic.com/wp-content/uploads/2024/11/image-258-1920x1080.png 1920w, https://www.thecoinrepublic.com/wp-content/uploads/2024/11/image-258.png 2048w" sizes="(max-width: 1024px) 100vw, 1024px">
  <figcaption class="wp-element-caption">
   <em>BTC Long-Term Realized Cap Impulse | Source: Alphractal</em>
  </figcaption>
 </figure>
</div> 
<p>The pattern suggested that <a href="https://www.thecoinrepublic.com/2024/11/01/will-bitcoin-price-hit-84k-cryptoquant-predicts-imminent-ath-breakout/">Bitcoin</a> could be on the cusp of a significant move. If history repeats itself, the current position might act as a launchpad for another upward trajectory.</p> 
<p>Especially if sustained buying pressure manifests. Conversely, failure to breach this level might see Bitcoin retracing to lower support zones.</p> 
<h2 class="wp-block-heading" id="h-rising-bitcoin-open-interests"><strong>Rising Bitcoin Open Interests</strong></h2> 
<p>Additionally, Bitcoin’s open interest remained steady at a high level compared to recent weeks, indicating sustained buying. </p> 
<p>Traders held their positions tight, reflected by the green and orange open interest lines, suggesting a waiting game for a breakout or breakdown.</p> 
<p>The volume bars, although varied, stayed relatively consistent, hinting that there was no significant shift in trading activity that could decisively move the price beyond this bracket. </p> 
<p>Given the high open interest, any significant price movement out of this band could have amplified effects.</p> 
<div class="wp-block-image"> 
 <figure class="aligncenter size-large">
  <img loading="lazy" decoding="async" width="1024" height="452" src="https://www.thecoinrepublic.com/wp-content/uploads/2024/11/image-260-1024x452.png" alt="" class="wp-image-822347" srcset="https://www.thecoinrepublic.com/wp-content/uploads/2024/11/image-260-1024x452.png 1024w, https://www.thecoinrepublic.com/wp-content/uploads/2024/11/image-260-300x132.png 300w, https://www.thecoinrepublic.com/wp-content/uploads/2024/11/image-260-768x339.png 768w, https://www.thecoinrepublic.com/wp-content/uploads/2024/11/image-260-1536x678.png 1536w, https://www.thecoinrepublic.com/wp-content/uploads/2024/11/image-260-150x66.png 150w, https://www.thecoinrepublic.com/wp-content/uploads/2024/11/image-260-696x307.png 696w, https://www.thecoinrepublic.com/wp-content/uploads/2024/11/image-260-1068x471.png 1068w, https://www.thecoinrepublic.com/wp-content/uploads/2024/11/image-260.png 1781w" sizes="(max-width: 1024px) 100vw, 1024px">
  <figcaption class="wp-element-caption">
   <em>BTC Open Interest | Source: Trading View</em>
  </figcaption>
 </figure>
</div> 
<p>If BTC breaks above the resistance, we could see a sharp upward movement as shorts cover and longs add to their positions. </p> 
<p>Conversely, falling below support might trigger a rapid sell-off. Traders should watch these levels closely, as a breakout from this consolidation could set the direction for Bitcoin’s next significant move.</p> 
<p>The post <a href="https://www.thecoinrepublic.com/2024/11/10/bitcoin-most-crucial-levels-what-it-means-amid-rising-open-interest/">Bitcoin Most Crucial Levels: What It Means Amid Rising Open Interest</a> appeared first on <a href="https://www.thecoinrepublic.com">The Coin Republic</a>.</p>

Bitcoin Most Crucial Levels: What It Means Amid Rising Open Interest

Table of Contents

Thecoinrepublic.com

Other articles published on Nov 11, 2024

Bitcoin Surges Past $71,000: What Could be the Possible Reasons?

Historical Data Hints XRP May Soar 700% to 60,000% Following U.S. Presidential Elections

Dogecoin Whales Accumulate Tokens, Boosting Market Sentiment

Cardano Hits 7-Month High as Founder Eyes Hopeful Role in Shaping Trump Crypto Policy

FTX Sues Binance and Former CEO Changpeng Zhao, Seeks $1.8 Billion: Report

Kraken Tightens Up: Layoffs, New Co-CEO, and a Strategy Shift Amid a Crypto Industry Reset

Join our free newsletter for daily crypto updates!