Professional traders still expecting Bitcoin price to hit $20,000

The price of Bitcoin (BTC) failed to break above the $20,000 level this week. However, several records related to volume and open interest were set en route to $19,484. One notable achievement was that open interest in aggregate futures contracts reached $7.4 billion on derivatives exchanges. 

There has been a 110% increase in the last six months. It is also worth noting that the Chicago Mercantile Exchange, CME, currently has more than $1.1 billion in these contracts. 

The volume of the crypto market soared to new highs, will BTC price follow?

The total volume of the cryptocurrency market also reached an all-time high on November 24. Some investors might assume that this is a bullish event. Still, it is essential to remember that there are a buyer and a seller in every trade. So how can the entry of big sellers be considered bullish?

The total volume of each spot exchange reached $285 billion this week. However, there is always the possibility that some of these exchanges have expanded their volumes. Despite this, $285 billion represents an 11% increase compared to the peak seen on March 13.

Yesterday, the Bitcoin options markets also set a high in terms of open interest. These are contracts that a buyer pays in advance to either buy (call options) or sell (put options) at a predetermined price in the future.

What are the levels to watch out for?

The Bitcoin price chart shows a breakdown below the $18,500-18,800 area, and that is immediately the most important resistance to break out if the market turns bullish again.

Regardless, the region between $15,800-16,300 is a crucial support zone to hold and is currently holding as one on the daily time frame.

In that sense, a new range is established. Analysts think that as long as Bitcoin holds support above $15,800-16,300, the bull market is likely to resume.

However, if it does not hold support, then a further correction towards $13,800-14,200 should be expected. This level is the high of summer 2019, where the next bullish support/resistance change may occur.

In the higher time frames, the $18,000-18,200 is the first clear barrier to break. That was the level that Bitcoin price failed to break through on the bounce today. If that breaks down, the next area to watch is $18,400-18,800, where today’s bearish chain reaction began.