Bitcoin is losing bullish momentum mid-week and slipping below the $67,000 zone. Despite the high net inflows seen in recent days, the trend has begun to reverse at a key resistance zone that has historically supported the overall downtrend on the cryptocurrency. The declines we are currently seeing are reversing the previously mentioned trend dictated by ETFs, as yesterday saw the first net outflow of funds since early October of this year.
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Create account Try a demo Download mobile app Download mobile appImproved sentiment around the crypto market has exerted a surge of interest in the options market. Options traders are increasing bets that bitcoin will reach a record high of $80,000 by the end of November, regardless of who wins the US presidential election. There is also a lot of interest in the $70,000 strike price.
Source: Bloomberg Financial LP
On the other hand, in the short term, traders are buying call options near 68,000 and puts near 66,000, in other words, many are still positioning and repositioning for a breakout from either end of this price range.
Data for yesterday suggests the first net outflow of funds since the first half of October this year. Source: XTB Research
As we mentioned earlier, Bitcoin broke out of the zone of the upper limit of the downtrend channel, which has defined the overall downtrend since March this year, with a bottom. In the short term, it is this zone (the yellow area on the chart) that could be an important supply checkpoint. On the other hand, however, the 50-day EMA (blue curve on the chart) may become local support. Source: xStation
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