Bitcoin’s Funding Rate and Resistance Threaten Price Rise – Btc News

[Andrea]

Bitcoin’s Funding Rate and Resistance Threaten Price Rise



Bitcoin (BTC) is facing possible resistance as it enters its third day of price decline despite initial recovery efforts. Bulls continue to maintain market highs based on spot ETF inflows and the upcoming halving. However, bearish traders say the price will not rise as expected due to macro and sector factors.

A new analysis from the crypto company CryptoQuant It shows the reasons why the market leader has a high probability of a price decline amid positive sparks. According to the report, the expected rapid recovery in the market may be disrupted due to funding rates and correction levels.


Funding Rates May Affect Bitcoin’s Price


Bitcoin funding rates are high near 2021 bullish numbers, which could trigger a reversal. While positive funding rates make sense bullish momentumExcessively high figures may trigger price corrections in the market. Similarly, while Bitcoin rose to an all-time high last month, its price faced its biggest resistance level yet.

At the time of writing, Bitcoin is trading at $63,300 following a weekend price drop that was amplified by significant liquidations. Prior to this point, the asset price corrected slightly below the $70,000 high and traded sideways.

“The price is in a defined channel with approximately 20% expansion/retracement; This is an ideal scenario for big players to build big positions. “The price of Bitcoin has increased by more than 300% since the last market cut, and despite all the short 20% corrections during this period, there has never been a premium period like the current one.”

Retail Flows Show a Downward Trend




Additionally, retail flows may show signs of resistance around the current price range. Retail flows have not reached these levels in three years, data show.

”Historically, when there are big profit-taking moves in retail, it means a potential peak is on the way. “Following the rapid decline in prices over the last two days, these shareholders have experienced a significant outflow in their income.” note added.


IRS tax deadline and other macroeconomic factors caused prices in stocks and crypto assets to decline, with Bitcoin prices falling below $63,000.

So read: Mark Cuban Transferred $275 Million in Taxes and Sent an Important Message to Society




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The content presented may contain the personal opinion of the author and is subject to market conditions. Do your market research before investing in cryptocurrencies. Neither the author nor the publication accepts any liability for your personal financial loss.

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