- Bitcoin is currently facing downward pressure, trading at a 1.17% decrease around $37,300, with a market value recorded at $729 billion.
- An analyst added that mentioning the danger zone of Open Interest (OI) indicates that the market is in a highly leveraged situation, signaling the possibility of further volatility.
- If there is a short squeeze causing a price reversal above a specific level (37.6k), taking a position might be considered safe.
Bitcoin’s price is under pressure as it enters the last week of November: What will be the determining scenarios for BTC price?
Bitcoin Price Under Pressure on Monday
Bitcoin is currently facing downward pressure, trading at a 1.17% decrease around $37,300, with a market value recorded at $729 billion. As BTC’s price falls below $37,500, the likelihood of more Bitcoin liquidation increases, leading to a significant increase in Open Interest (OI).
Popular crypto trader CrediBULL notes a significant increase in Open Interest for Bitcoin derivatives. This indicates that many leveraged traders are taking positions against this price drop instead of being pushed out of the market. This is not ideal as it shows that leveraged positions are still widespread, indicating increased market risk.
The analyst added that mentioning the danger zone of OI indicates that the market is in a highly leveraged situation, signaling the possibility of further volatility. It emphasizes that increased volatility does not provide a clear direction for the market.
The two possible scenarios mentioned can be termed as a “major short squeeze” (a rapid increase due to short sellers closing their positions) or a “continuing decline” (a sustained downward movement in price).
If there is a short squeeze causing a price reversal above a specific level (37.6k), taking a position might be considered safe. On the other hand, in the case of a long squeeze and the price continuing to fall, there might be an opportunity to buy at a lower price.
Two Possible Scenarios for BTC
There are two different possible scenarios for Bitcoin, and these scenarios could be critical factors in determining the direction of Bitcoin. The scenarios are as follows:
- Scenario of Recovering Local Lows: If the market successfully recovers and regains recent local lows, you may consider targeting short liquidations in the range of 38k to 38.2k.
- Scenario of Failing to Recover Local Lows: If the market fails to recover and cannot regain recent local lows, you may consider contemplating long liquidations in the range of 36.6k to 36.9k.
