- Key Resistance Level at $65,200
- Role of Derivatives Market in Current Growth
- Speculations in Altcoin Market
Bitcoin has reached a new local high of $64,200, emphasizing the importance of the upcoming $65,200 resistance level.
Key Resistance Level at $65,200
On Monday, September 23, 2024, Bitfinex analysts noted that Bitcoin approached the $65,200 level, a key resistance since August 25. This level is critical as Bitcoin has not surpassed any significant highs before dropping again since reaching its all-time high of $73,666 on March 14, 2024. This pattern signals a downtrend. Bitfinex states that the $65,200 level is a significant hurdle for Bitcoin.
Role of Derivatives Market in Current Growth
Analysts highlight that the recent Bitcoin rise has been primarily driven by an increase in open interest (OI) in the derivatives market. Although Bitcoin's price has not exceeded the local high of $65,200, OI has risen to $19.43 billion, above the $18.93 billion level recorded on August 25. Bitfinex reports that the current growth may be driven mainly by speculation in the futures and perpetual contracts market, rather than by activity in the spot market. However, they note that the OI indicator alone is not a direct indicator of leveraged positions.
Speculations in Altcoin Market
Speculation in the altcoin market has also surged significantly. Some altcoins such as SUI and AAVE have doubled their value since August and September. This is due to a significant drop in altcoin valuation and OI since March 2024. Bitfinex reports that OI for altcoins on some trading pairs has reduced by 58.5% from $19.6 billion in March to less than $11.48 billion in August and September. However, the increase in OI to $11.48 billion raises concerns as the OTHERS index, which excludes the top 10 cryptocurrencies by market cap, does not show similar growth.
Analysts are monitoring Bitcoin's ability to surpass the $65,200 level, which could signal the start of a new bullish trend. It is crucial to watch developments in the derivatives and altcoin markets, as these may also impact the major cryptocurrencies.
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