Benzinga - Major cryptocurrencies have witnessed a significant rally over past one week despite concerning economic data release in the U.S.
What Happened: Bitcoin (CRYPTO: BTC) surged over 12% in last five days while Ethereum (CRYPTO: ETH) rallied close to 9% during the period.
At the time of writing, Bitcoin was trading close to the $24,500-level.
Despite the optimism, professional traders appear to consider the $26,000-level as a stiff short-term resistance. This is because the maximum open interest build-up appears to be concentrated between the $25,000 and $26,000 levels, according to data from two different exchanges.
See Also: How To Buy Bitcoin (BTC)
Since professional traders prefer shorting options and collecting premiums than buying them and with significant open interest build-up in the zone, the level could be seen as a strong resistance till Friday.
From a chart perspective, too, Bitcoin had failed to breach and consistently stay above the $25,000-mark in August 2022. However, if that happens now, the next crucial resistance can be anticipated close to the $30,000 level.
On the downside, the maximum open interest build-up can be seen in the $23-500-$24,000 range and this could be seen as an important short-term support.
Ethereum: For Ethereum, options expiring on Friday indicate a short-term resistance close to the $1,600 level — albeit the fact that the coin is currently trading at $1,680 level — while a support could be seen close to $1,500-mark.
Read Next: Investor Optimism Improves Further Following Retail Sales Report
© 2023 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.