Bitcoin faces this last resistance zone before its all-time high of $ 20,000
Bitcoin is approaching its all-time high, but there is one remaining area of resistance that buyers must cross.
Bitcoin (BTC) traders are spotting the order books of major exchanges indicating that $ 19,500 is a short-term resistance level.
Bitcoin is rejecting $ 19,500 for now
On November 25, Bitcoin price was rejected at $ 19,500, with a relatively large volume on top spot exchanges. At Binance, for example, the BTC price reached $ 19,484 before seeing a slight return below $ 19,300.
A minor refusal was likely due to piles of sell orders between $ 19,450 and $ 19,550.
Under a popular pseudonym known as the "Byzantine General", the trader shared order books of all major exchanges, which showed $ 19,500 as a key area for sellers.If Bitcoin does not retest the $ 19,500 area in the next few hours, that could mean another drop is likely. Traders are expecting some backlash from sellers, who think it will be the last resistance to an all-time high.
Another small retreat will benefit Bitcoin as it will further neutralize the financing rate of futures. The funding rate for BTC futures once again increased to 0.07% on Binance Futures and other exchanges.
Considering that Bitcoin's average funding rate is 0.01%, a short-term decline to reset the derivatives market could further strengthen the upward momentum.
Shorts vary at levels not visible since April
However, one variable to consider is that the number of shorts in the Bitcoin market is at its highest since April.Bitcoin's price fell below $ 3,600 in March. It then continued to climb, exceeding $ 19,000. The rally accelerated in April, when short contracts reached their highest annual level.
As the number of short contracts in the market increases, the possibility of short-term jams also increases. A short contraction occurs when the price of an asset continues to rise despite significant selling pressure.