Bitcoin (BTC) traders are pinpointing the order books of major exchanges that show the $19,500 level is a near-term resistance level. <\/p>\n
On Nov. 25, Bitcoin price was rejected at $19,500 with a relatively large volume across top spot exchanges. On Binance, for example, BTC price hit $19,484 before seeing a slight pullback to sub-$19,300.<\/p>\n
The minor rejection likely occurred because of the stacks of sell orders between $19,450 and $19,550.<\/p>\n
A popular pseudonymous trader known as Byzantine General shared the order books of all major exchanges that showed $19,500 as a key area for sellers.<\/p>\n
Vijay Boyapati, a Bitcoin researcher, similarly said that the $19,500$19,550 range remains as the last sell wall before a new all-time high.<\/p>\n
If Bitcoin does not retest the $19,500 area again in the next several hours, this could mean that another drop is likely. Considering that it would be the last resistance until the new all-time high, traders expect some reaction from sellers.<\/p>\n
Another small pullback would benefit Bitcoin because it would further neutralize the futures funding rate. The funding rate of BTC futures has increased once again to 0.07% on Binance Futures and other exchanges.<\/p>\n
Considering that the average funding rate of Bitcoin is 0.01%, another short-term drop to reset the derivatives market may even strengthen the upward momentum.<\/p>\n
However, a variable to consider is that the number of shorts in the Bitcoin market is at its highest since April.<\/p>\n
In March, the price of Bitcoin crashed to below $3,600. Subsequently, it continued to climb, eventually surpassing $19,000. The rally accelerated in April when short contracts hit a yearly high.<\/p>\n
The likelihood of a short squeeze rises when the number of short contracts in the market increases. A short squeeze occurs when the price of an asset continues to go up despite the presence of significant selling pressure.<\/p>\n
This trend causes short-sellers to market-buy their positions, fueling more buying demand in the market. A pseudonymous analyst known as Cactus wrote:<\/p>\n
If the number of shorts continues to increase, it would also cause the futures funding rate to decline. In a way, this could make the rally more sustainable in the medium term.<\/p>\n
<\/p>\n
See the original post: Bitcoin (BTC) traders are pinpointing the order books of major exchanges that show the $19,500 level is a near-term resistance level. On Nov. 25, Bitcoin price was rejected at $19,500 with a relatively large volume across top spot exchanges Continue reading
\nBitcoin faces this final resistance zone before $20K all-time high - Cointelegraph<\/a><\/p>\n","protected":false},"excerpt":{"rendered":"