Bitcoin’s price is still struggling to rise above the $100K level after just wicking above it last week.
Yet, the market structure indicates that it could only be a matter of time.
Technical Analysis
By Edris Derakhshi (TradingRage)
The Daily Chart
On the daily timeframe, the price has been gradually climbing over the last few weeks as the market has slowed down following the breakout above the $90K level.
Yet, while BTC briefly traded above $100K last week, it has not been able to continue higher or stay above this level. Meanwhile, as the market structure remains bullish and the RSI clearly shows bullish momentum, it is likely that Bitcoin will break out higher soon.
The 4-Hour Chart
Looking at the 4-hour chart, the asset has been making higher highs and lows over the past few weeks, forming a rather narrow ascending channel. Currently, the market is getting supported at the lower boundary of the pattern, which could lead to a rally toward the higher trendline and values bigger than $100K in the coming weeks.
On the other hand, if the lower boundary of the pattern is broken, a drop toward the $90K support zone could be expected. Yet, looking at how things stand right now, the bearish scenario is less likely.
On-Chain Analysis
By Edris Derakhshi (TradingRage)
Funding Rates
While Bitcoin’s price is slowly rising toward the $100K level again, and probably higher, futures market traders should be over the moon with optimism. However, last week’s quick rise above the $100K level and the flash crash afterward have cooled down the futures market sentiment significantly.
This chart presents the funding rates metric, which is a good proxy for futures market sentiment. It shows whether the buyers or the sellers are more dominant and aggressive in executing their orders. Typically, positive values are associated with bullish sentiment and vice versa.
While Bitcoin’s aggregate funding rates massively spiked last week, the huge volatility on the day BTC finally reached $100K led to significant liquidations. As a result, funding rates have returned back to normal values for a bull run, which could lead to a more sustainable rally in the upcoming weeks.
