November: The Month of Changes for Bitcoin

by 99Crypto

November 2021 is going to be a crucial month for Bitcoin traders who feel bullish about this valuable and dynamic digital currency. With a trading range floating between $58,400 and $63,400, the sentiment building around BTC/USD is very positive, but active traders who swoop in to take profits with each price spike are keeping the market volatile.

Bitcoin is currently consolidating just below the $63,400 level. The price dropped to a low of $59,500 before bouncing back and is currently trading above the $61,000 and $64,000 levels. BTC reached a low of $58,400 before bouncing back to a value of $62,400. The price has fluctuated about $14,500 in the past 30-days. Market analysts expect more decline in the coming weeks, but they are also expecting healthy bounces each time around.

What many traders are doing with regard to covering their bullish market positions involves writing BTC options contracts. The idea is to create a hedge that can attenuate volatility. The question many analysts are asking, though, is whether or not a lot of traders are actually buying the contracts they write? This is the reason we are focusing on two key levels below. If the price drops below $58,400, we can expect some sort of bearish catalyst. These are the levels that are most likely to trigger a strong bearish reaction that may trigger huge losses. While if the price bounces off the $58,400 level, the bullish pressure could continue for more price gains.

Bitcoin is currently trading between $63,000 and $64,000. There are a lot of bullish catalysts that are lining up, so we expect the price to test those levels. There is a lot of pressure coming from altcoins, but this does not explain why many traders feel the need to hedge their positions with BTC options. The best explanation is that these are seasoned traders who have figured out the patterns exercised by many of their peers; in other words, they know that pullbacks are the result of day traders looking to make a quick buck. They are using this knowledge to get the best of both worlds. At this stage in the game, we would be amazed if the price did not try to bounce off the $58,400 level in the short-term.