Bitcoin’s price has been consolidating above the $60K mark, failing to continue its upward trajectory. Yet, soon, it will become evident whether the market will pull back further or make a new all-time high.
Bitcoin Price Analysis: Technicals
By TradingRage
The Daily Chart
On the daily chart, the price has been rejected from the $70K resistance level and is on its way to retesting the $60K support zone.
If Bitcoin breaks below $60K, a massive drop toward the $52K area becomes much more likelier. Yet, if the price successfully reclaims the $68K level, creating a new all-time high would likely only be a matter of time.
The 4-Hour Chart
Looking at the 4-hour chart, the price has been creating a consolidation pattern over the last few weeks. The lower boundary of the pattern has recently held the price from dropping lower, but the market is once again approaching the same area.
With the Relative Strength Index showing values below 50%, a breakdown of the pattern could be probable this time and could be somewhat disastrous as it can result in a much deeper decline.
Sentiment Analysis
By TradingRage
Bitcoin Funding Rates
Amid Bitcoin’s recent price drop, investors wonder whether the bull market is over or a natural price correction is occurring. Analyzing the futures market metrics can offer valuable insight into the market’s overall sentiment.
This chart presents the Bitcoin funding rates, which measure whether the buyers or the sellers are executing their orders more aggressively. Positive values show optimism, while negative values indicate bearish market sentiment.
As the chart suggests, the funding rates have significantly declined following the recent market correction. The metric is now showing values close to zero, which means that market sentiment is now neutral. While not necessarily a good thing, low funding rates mean that the futures market has cooled down, and if sufficient spot market demand comes in, the price can experience a sustainable rally in the coming weeks.
