(Bloomberg) -- Bitcoin briefly set a fresh 17-month high before retreating from the $35,000 price level as traders say the battle between crypto bulls and bears is intensifying in the derivatives market.
The largest digital currency jumped around 1.5% to $35,185 early Wednesday in New York, before turning negative. That topped the most recent high set last week, and was the highest price since May 2022. It was little changed at $34,600 as of 10:22 a.m. in New York.
“35k is a pivotal line and has been the resistance last 10 trading sessions,” said Teong Hng, chief executive of crypto investment firm Satori Research. “Hence, this typically provides a magnet for the market to gun for the stops.”
Bitcoin rallied 28% in October, the biggest monthly increase since January, on surging expectations that the US Securities and Exchange Commission may soon approve exchange-traded funds that invest directly in the cryptocurrency after more than a decade of deliberation. It surged more than 11% last Monday as traders speculated that a possible listing of a ticker for a proposed BlackRock fund suggested approval was imminent.
“It's an aftershock from the fast move past $35,000 last week,” said Michael Safai, a partner of proprietary trading firm Dexterity Capital. “Resistance has firmed at that level, but there's enough sustained momentum around the ETF news to make some runs towards $37,000.”
Traders may also be trying to get ahead of any surprises at today's FOMC meeting, Safai said. Any additional pressure on options and forced liquidations will provide support in the days to come, he noted.
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