The price of Bitcoin (BTC) increased by 3% in the last 24 hours from $10,322 to $10,680. But BTC still faces a significant resistance level around $11,000 and has seen low volatility since Sep. 3.
The declining open interest of the futures market and the stagnant spot market volume raise the probability of low volatility.
Low volume, low open interest and major Bitcoin resistance ahead
Technically, Bitcoin is in a position where it has risen above a crucial level at $10,570, which has previously acted as a resistance area. However, the resistance range from $11,000 to $11,288 serves as a roadblock for an explosive rally.
The daily chart of Bitcoin. Source: TradingView.com
The confluence of the lackluster open interest and volume, combined with the major $11,000 resistance level, could cause BTC’s volatility to remain low for an extended period.
The aggregated open interest of the Bitcoin futures market declined from $5.7 billion to $3.8 billion in the past