Is BTC breaking above $35,000 on a significant daily breakout?

02.11.2023

Dear traders,

BTC has broken above $35k on the daily chart, potentially indicating a larger breakout or just a deviation above the resistance. We will see the results upon the daily close.

Jake
TOP Trader

BTC has broken above $35k on the daily close and now needs to hold above it for a bigger breakout. There is still a danger of a possible deviation and a return to the channel. For now, the market remains bullish on BTC.

ETH is currently facing substantial resistance at $1,830. To sustain its bullish trend and return to the $1,900 range, it needs to break above this level. Caution should be exercised if a significant volume of selling pressure pushes the price lower.

XRP is pushing strongly towards the $0.62 resistance, creating bullish momentum for a bigger breakout. It still maintains strong bullish momentum and is preparing for a significant upward move.

LINK aims to break the resistance at $11.5 and make a significant upward push. Sustaining levels above $9.5 is crucial for significant bullish momentum.

SOL pushed strongly above the $41.5 resistance and touched $46, which is a great bullish push up, and it needs to sustain above $41 for a strong continuation.

EOS pushed strongly into the $0.662 resistance and then began to push back strongly. It still requires significant buying volume to push upwards.

LTC is currently breaking through the $70 resistance level. Only a push above it, combined with holding that level, could drive the price higher. There’s still a risk if the price doesn’t stay above $70.

DXY is regaining strength for an upward push and needs to hold above 106.2 for a more extensive bullish continuation.

Crypto/stock daily news:

WHAT TO EXPECT IN NOVEMBER

October Uptober was a good month for crypto.

BTC jumped 29%
ETH rose 9%
Total Value Locked (TVL) on DeFi protocols increased by 8%

Which made it the perfect time to snap a picture for my Christmas card this year…

Now for the million-dollar question: will the BTC pump continue in November?

Well, there are two things you should know…

1/ November is one of Bitcoin’s best-performing months.

Historically speaking, Bitcoin has its highest average returns (+40%) this month.

Fun Fact of the Day: Bitcoin was green in September and October this year…

That’s something that’s only ever happened twice before. (2015 and 2016)

The two times it happened, Bitcoin also had a green November AND a green December. We’re hoping for a 3-peat…

2/ Short Gamma is helping Bitcoin’s price pump

Over the last few weeks, I’ve been hearing the same term over and over again…“short gamma”.

At first, I thought it was a new nickname for guys under 5’7”. (no offense to my short kings out there)

Turns out, it’s a real thing in the investing world. And it’s been playing a big role in Bitcoin’s price increase recently.

Here’s an easy way to think about it:

Investors can buy/sell options contracts for an asset (i.e. Bitcoin) whenever they want
Whenever that happens, market makers (aka the entities that offer options contracts) take the opposite side of investors’ trades to maintain a market-neutral portfolio
This is called “gamma hedging” and market makers do this by buying/selling the underlying asset (i.e. BTC) as prices move

Well, there’s recently been a huge demand for Bitcoin call options, which has put market makers in the “short gamma” zone.

This means that as prices go higher, market makers need to buy more BTC to hedge and maintain a market-neutral position.

The result? Something called a “gamma squeeze”. (Hint: it’s just like a short squeeze)

Prices go up → so market makers need to buy BTC → which pushes prices higher → forcing market makers to buy more BTC → prices go even higher → leading to a happy Trader Jake

Many believe that this is part of the reason why Bitcoin saw such a big pump last week.

And guess what? Analysts (with much higher IQs than me) think it could happen again soon…

I’m no mathematician but…

A historically good month for BTC + a potential gamma squeeze =

A green November 2023 (?).

FAST NEWS:

Bitcoin’s white paper turned 15 years old yesterday. “Go shawty, it’s yo birthday. We’re gonna party like it’s yo birthday…”

Celestia (a data availability blockchain) has officially launched its new mainnet network. Say hello to the new kid on the blockchain.

Trading giants Jane Street, Virtu Financial, Jump Trading, and Hudson River Trading are in talks with BlackRock to help launch its spot Bitcoin ETF. Talk about some powerhouses…

MetaMask is partnering with security firm Blockaid to add native security alerts to its browser extension. The goal is to proactively prevent malicious transactions and protect users from scams, phishing attempts, and hacks.

Vitalik dropped a new blog post about the Ethereum layer 2 ecosystem. “Wake up, babe. V-God dropped a new banger.