Bitcoin's Price Action Raises Suspicion
Bitcoin (BTC) recently reached $37,000 for the first time in 18 months, but traders are becoming wary of its price action.
BTC Attempts to Crush Resistance on the Way to $40K
Bitcoin is currently making a push towards the $40,000 mark after experiencing significant gains overnight.
Volume Decline Raises Concerns
Despite its recent strength, the trading volume for Bitcoin is declining, causing some market participants to question the sustainability of its price increase.
On-chain monitoring resource Material Indicators highlighted the lack of strong volume support at current levels, noting that while price has been challenging various local top signals, the appreciation is happening on declining volume.
Whale Selling and Increasing Open Interest
Traders have observed ongoing whale selling as Bitcoin approaches $40,000, which has become a key psychological level in its own right.
Financial commentator Tedtalksmacro pointed out the increasing open interest (OI) in Bitcoin futures, which has been a precursor to upside moves in recent weeks and months. The total Bitcoin futures OI currently exceeds $17 billion, the highest value since mid-April.
Investment Risks and Advice
This article does not provide investment advice or recommendations. Readers should conduct their own research and be aware of the risks involved in every investment and trading move.
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