Bitcoin Faces Resistance Amid Market Sell-Off and Futures Gap Closure

According to Cointelegraph, Bitcoin (BTC) experienced a classic futures gap fill following the Wall Street opening on Tuesday, as traders anticipated a rebound. The BTC/USD pair saw its price action dip after reaching new November highs near $107,500, forming a significant resistance zone that bulls struggled to surpass. Consequently, the pair reversed downward, filling its latest weekend gap in the CME Group's Bitcoin futures market at $104,000. Such gaps often serve as short-term targets for BTC price movements. Despite expectations for a rebound, trading resource Material Indicators highlighted a substantial sell-off by Bitcoin whales, amounting to $240 million, which contributed to the price decline. This market dump was evident in the BTC order book, with Brown Mega Whales accounting for only about $3 million of the total. Trader Skew noted renewed short interest at the $104,000 price area, emphasizing its pivotal nature. Market participants have identified BTC price support targets, including levels below $100,000, as relevant in the current scenario. As Bitcoin's price fluctuated around the $100,000 mark, analysis indicated a significant risk-off shift among derivatives traders. Open interest (OI) decreased by over 11% within a week, according to on-chain analytics platform CryptoQuant. This drop in OI suggests the market is eliminating speculative risk, historically a precursor to recovery. Contributor GugaOnChain explained that while short-term volatility may persist, the metric indicates market consolidation on a more stable base, potentially setting the stage for a subsequent rally. This aligns with the thesis that the current region represents a buying opportunity for long-term investors. The ongoing deleveraging event signals a strong buying opportunity, according to the analysis. Readers are reminded that this article does not provide investment advice or recommendations. Every investment and trading decision involves risk, and individuals should conduct their own research before making any decisions.