Market Watch Nov 1: Bitcoin Tests Upside, Faces Resistance.
Bitcoin tried to test the upside to $21,000 but was faced with resistance. It traded in the range of $20,287 – $20,795, indicating moderate volatility over the last 24 hours. The popular cryptocurrency has been holding the $20,502 mark, while Ethereum which has gained nearly 18% in the last seven days is trading at $1,588.
The overall crypto market is looking good with Dogecoin being the biggest gainer at 111.09% in the last seven days, followed by fellow meme coin Shiba Inu at 24.52% as per data from CoinMarketCap. Altcoins Avalanche is up by nearly 4% in the last 24 hours, and Cardano gained 1.19%.
Coming back to Bitcoin, there is selling pressure and likely leading past the $20,400 local support. After the Bitcoin price action saw a massive rally last week, investors are hoping the popular cryptocurrency will continue on the upside. But there has been a retrace as well, a move towards the $20,000 support. Buying pressure made a comeback suggesting there is more to the upside. Data shows that Bitcoin’s futures premium stood below 2% for the past 30 days, indicating a lack of interest from leverage buyers.
Moreover, the crypto market didn’t see significant improvement on October 29 as Bitcoin rallied toward the $21,000 resistance. Analysts believe derivatives traders are not enthusiastic about BTC’s price despite the low cost of adding bullish positions. There is no demand from buyers as Bitcoin nearly touched the $21,000 mark on October 29. Overall, traders hope Bitcoin will break out above the crucial $21,000 in the short term.