Bitcoin Key Levels: Three Critical Resistance Points

Background on Bitcoin Key Levels

Bitcoin is currently trading near historic highs, raising interest among traders for potential resistance and support zones. Bitcoin key levels have emerged, with chart patterns and options market data highlighting significant price points that could influence upcoming market moves. According to an analysis by Omkar Godbole, a Chartered Market Technician at CoinDesk, expanding range patterns and open interest data provide clues on where bitcoin might encounter crucial resistance as momentum continues.

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Resistance at Upper Boundary of Expanding Range

The first major bitcoin key level under scrutiny is the upper boundary of a broadening range pattern, which has developed since mid-July. This boundary, defined by a trendline connecting the highs on July 15 and August 14, could act as immediate resistance. A reversal from this level might lead to a corrective decline toward the lower edge of the expanding range, marked by connections between the August 3 and September 1 lows. If bitcoin breaks out above this pattern, the focus shifts upward to additional critical resistance points.

Market Maker Activity at $135,000

The $135,000 mark is a second bitcoin key level identified by options market data. Analysis of Deribit-listed options positions, monitored by Amberdata, shows that market makers have established a net long gamma position at this price. When market makers are net long gamma, they pursue strategies that reduce price swings—buying on price declines and selling on rallies—to remain market-neutral. A report notes that “this hedging activity tends to dampen price volatility.” (CoinDesk). As a result, $135,000 may act as resistance, slowing price advances should bitcoin approach that region.

$140,000 Options Open Interest as a Price Magnet

The third key level is $140,000, which stands out due to its high notional open interest. Data from Deribit shows the $140,000 strike call is the second-most popular on the exchange, with open contracts notional value exceeding $2 billion. Large concentrations of open interest often attract price movement, acting as magnets. A high number of call options at this level reflects strong expectations among traders that bitcoin might reach or surpass this price. However, sellers of these calls, typically institutional players, may try to keep prices below $140,000 by adjusting their own market activity, creating additional resistance and potentially complicating further upward movement.

What’s Next for Bitcoin Price Levels?

With bitcoin near record territory, technical levels and options market activity suggest that $135,000 and $140,000 will be critical thresholds in the coming sessions. A breakout or reversal at these bitcoin key levels may set the tone for future volatility and direction, as technical traders and institutional hedging converge at these important price points. As always, continued monitoring of options data and price patterns will be crucial for anticipating the next moves in bitcoin’s historic run.