This is an analysis analysis of the Coendesk analyst and rented market technician Omkar Godbole.
Like Bitcoin Trade in unknown territory near records, merchants can be looking for signs about what comes next, especially the key levels that could act as magnets or resistance points.
Here are three important levels that are worth seeing closely.
$ 126,100
This level represents the upper limit of the expansion or expansion range pattern that has been developed since mid -July. The potential resistance is defined by the line of trend that connects the maximums of July 15 and August 14.
A reversal of this level could trigger a corrective setback down towards the lower limit of the range, represented by the trend extracted from August 3 and September 1.
$ 135,000
A rupture from the expanding range would change the approach to $ 135,000, where market manufacturers currently have a net gamma position, according to the activity in the options quoted in abandonment tracked by Amberdata.
When market manufacturers are a long net gamma, they tend to trade with the market management, buying in falls and the sale of demonstrations, to maintain their general exposure to the neutral market. On equal terms, this coverage activity tends to cushion price volatility.
In other words, the level of $ 135,000 could act as a resistance on the highest path.
$ 140,000
Finally, $ 140,000 stands out as a key level, since the detribit data shows that the strike call of $ 140,000 is the second most popular in the exchange, which has an open notional interest of more than $ 2 billion.
The notional open interest refers to the dollar value of the number of active or open options contracts at a given time.
The levels with large concentrations of open interest often act as magnets, attracting the price of the underlying asset towards them. A high open interest in purchase options suggests that many merchants expect the spot price to approach or exceed that level.
At the same time, those who have sold these calls, often great institutions, have an incentive to maintain the price below that strike. Its coverage and commercial activity around that level can create resistance, which makes it difficult for the price to go through.
