Bitcoin briefly tops $35,000, but quickly retreats

Bitcoin also topped at nearly $35,000 on Monday, reaching a 17-month peak amid expectation for a spot bitcoin ETF

Bitcoin briefly topped $35,000 Wednesday for the second time this week, but prices swiftly retreated as that level seemed to trigger numerous sell orders, perhaps from miners, said one hedge fund manager.

The $35,000 level represents a monthly resistance level for the price, and could mean that bitcoin will consolidate below for some time after the crypto’s big run higher, said Charles Edwards, founder of Capriole Investments.

Bitcoin miners are selling off more of their treasury than usual today; this can be a warning sign for consolidation, he added. Edwards observed a rise in Capriole’s Bitcoin Miner Sell Pressure, which suggests that bitcoin miners are selling a bigger part of their revenues than on average.

In spite of the short-term consolidation, Edwards proposes bitcoin could target the $40,000-$45,000 range in the coming weeks as the sell pressure subsides.

While price may temporarily stall here at monthly resistance, the next significant trouble area is low- to mid-$40Ks, Edwards added. We expect bitcoin will take us there in short order given the data on hand.

The biggest crypto currency in terms of market capitalization also topped at nearly $35,000 on Monday, reaching a 17-month peak as expectation for a spot bitcoin ETF – along with some other catalysts – hit a fever pitch. In spite of stories about imminent approval for a spot exchange-traded fund turning out to be incorrect, bitcoin has pulled back only modestly from that level.

While bitcoin retreated around 2% after the run to $35,000, it remains 1.6% higher over the past 24 hours. That is a sizeable outperformance over U.S. stocks, where the Nasdaq is down 2.4% and the S&P 500 by 1.4% early Wednesday afternoon.

The renewed drop in stocks came along with a steep 13 bps increase in the 10-year Treasury yield to 4.95%. Also on investor minds were poor third quarter earnings results from Google (9% lower today) and increasing geopolitical concerns.

Disclaimer: The opinions expressed by our writers are their own and do not represent the views of Scommerce. The information provided on Scommerce is intended for informational purposes only. Scommerce is not liable for any financial losses incurred. Conduct your own research by contacting financial experts before making any investment decisions.