Expert cryptocurrency price analysis by CoinDesk’s analyst and Chartered Market Technician, Omkar Godbole.
Bitcoin (BTC) continues to soar, reaching historic highs, raising questions about what levels traders should closely monitor. In this cryptocurrency price analysis, we explore three critical thresholds that could significantly impact market movements.
Key Level at $126,100: A Stagflation Concern?
The $126,100 mark signifies the upper boundary of a broadening range pattern that began forming in mid-July. This potential resistance level is crafted by the trendline connecting the highs of July 15 and August 14.
A reversal at this level could trigger a downward pullback towards the range’s lower boundary, identified by the trendline from August 3 and September 1 lows.
Focus Shifts to $135,000
If BTC breaches this expanding range, attention turns to $135,000, where Deribit-listed options show market makers holding a net long gamma position, as tracked by Amberdata. With market makers being net long gamma, their hedging strategy—buying on dips and selling on rallies—helps stabilize price volatility. Consequently, this level could pose resistance as the price ascends.
Critical Level at $140,000
The $140,000 threshold is crucial, as Deribit data indicates the $140,000 strike call is the second-most popular, with a notional open interest exceeding $2 billion. A level with notable open interest can magnetically attract the asset’s price, leading traders to anticipate BTC’s approach to that price point. However, entities who’ve sold these calls, primarily large institutions, have motives to maintain prices below this strike. Their trading activities around this level can create formidable resistance.
At Bakara Invest, our analysis suggests that understanding these critical price levels can provide valuable insights into potential future movements in the BTC market, enabling informed trading decisions.
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