Bitcoin (BTC) traders point to the order books of major exchanges, which show the $ 19,500 level is short-term resistance.

Bitcoin has rejected $ 19,500 so far
On November 25, the Bitcoin price was rejected at $ 19,500 with a relatively large volume from the leading exchanges. On Binance, for example, the price of BTC reached $ 19,484 before there was a slight pullback from $ 19,300.

Minor failures are likely due to sales order batches ranging from $ 19,450 to $ 19,550.

A trader known by a pseudonym known as “The Byzantine General” has shared order books from all major exchanges, showing $ 19,500 as the primary area of ​​sellers.

Likewise, Bitcoin researcher Vijay Boyabati said the $ 19,500 to $ 19,550 streak was still the last selling wall ahead of a new all-time high.

If Bitcoin does not verify the $ 19,500 range again in the next few hours, it could mean that it will likely drop again. Given that this will be the last opposition to a new all-time high, traders are expecting some reaction from the sellers.

Other small takeaways could be in Bitcoin’s favor as it would further neutralize the future funding rate. The funding ratio for Bitcoin futures rose again to 0.07% on Binance Futures and other exchanges.

Given that the average Bitcoin funding rate is 0.01%, another short-term drop that will reset the derivatives market could boost upward momentum.

Shorts, which are at levels not seen since April, are variable.
However, it must be taken into account that the number of short positions in the bitcoin market is the highest since April 2020.

In March, the bitcoin price fell below $ 3,600. Then it continued to grow and eventually topped $ 19,000. The rally accelerated in April when the short contracts reached their annual highs.

The likelihood of a short squeeze increases with the increase in the number of short contracts in the market. Short-term pressure occurs when the asset’s price continues to rise despite significant selling pressures.

This trend is forcing card sellers to buy their positions, which increases the buying demand in the market. An analyst wrote under a pseudonym “Cactus”:

Bitcoin’s selling price has reached its peak since April 2020 …
If the number of short positions continues to rise, this will also lead to lower interest rates on the term financing. In a sense, it might make this rally more stable over the medium term.

Source: CoinTelegraph