Bitcoin has exhibited remarkable strength this week, maintaining a solid footing within the $68,000 range as it moves toward the critical $69,000 level. A surge past $70,000 would represent a significant milestone, yet traders are questioning whether today’s trading session will see Bitcoin breach this resistance level. Sell walls continue to present a challenge for Bitcoin’s ascent to all-time highs.
The $69,000–$70,000 zone remains a formidable barrier, with sell walls illustrated by the red line above BTC’s price on the chart reinforcing this cluster. The rally on October 28, primarily driven by futures market activity and liquidations, underscores the ongoing challenge: sellers persist in absorbing buying pressure as the price touches key resistance, creating barriers for further gains. High leverage push and spot demand have been pivotal to Bitcoin’s rally, as revealed in the recent BTC/USDT 1-hour chart.
Leveraged positions play a core role in Bitcoin's upward momentum, with futures traders increasing open interest to overcome high-leverage short positions. However, the essential spot purchasing demand necessary to maintain a breakout beyond $69,000 is currently lacking, resulting in price retracements each time Bitcoin hits the resistance zone. The absence of a spot premium limits Bitcoin’s breakout prospects.
Traders tend to quickly buy in the spot market during major price dips, which fuels short-term price recoveries. However, spot demand thins as Bitcoin nears breakout highs, suggesting that existing support levels may not possess the durability needed to facilitate a breakout above $70,000. This lack of spot premiums highlights a broader issue: without ample support from the spot market, rallies could easily fade. Market insights indicate that election impacts and a short-term outlook for Bitcoin remain crucial.
Commenting on recent price action, JJ, the head of crypto options and derivatives at HighStrike, remarked that a persistent sell wall continues to inhibit Bitcoin’s ability to surpass $70,000. "They’re doing a good job of keeping this price action as a slow burn," JJ noted, emphasizing that the market might struggle to sustain a push toward new all-time highs until after the impending US election.
As November approaches, JJ foresees a rise in de-risking activities, which may create a constrained timeframe for Bitcoin’s breakout potential..