The price of Bitcoin has yet to recover from its collapse from $68,000 a couple of weeks ago.
The cryptocurrency is consolidating in a narrow range, leaving market participants guessing about its future direction.
Technical Analysis of BTC Price
Author TradingRage
Daily chart
The daily chart shows that BTC price has failed to rise above the 200-day moving average located near the $63K mark after falling below it earlier. The market is currently consolidating around the $60K level and has yet to reclaim this key area.
In any case, as long as the cryptocurrency is trading below the 200-day moving average, the likelihood of the long-term bullish trend continuing is significantly low.
4 hour chart
Looking at the 4-hour time frame, Bitcoin’s recent range-bound movement becomes more apparent. The price is trapped between the $57K and $60K levels and has yet to break out to either side. The RSI is also hovering around the 50 mark, showing indecision in the market’s momentum.
Therefore, to have a more accurate idea of what will happen next, investors should wait for the market to break out either higher or lower, as the current range does not provide any significant clues.
Bitcoin Price Analysis Online
Author TradingRage
Bitcoin Funding Rates
BTC is going through a long period of consolidation, and investors are wondering about its short-term direction. As we have already discussed, the charts do not give significant clues. However, some optimistic signs can be seen in the future market indicators.
This chart shows the Bitcoin Funding Rate metric, which measures whether buyers or sellers are filling their orders more aggressively. It is an important metric for determining sentiment in the futures market. Positive values indicate bullish sentiment, while negative values support bearish sentiment.
As the chart shows, funding rates have fallen to near zero as the recent price decline has led to a significant cooling in the futures market.
Thus, a sustained rally may be on the verge of materializing, as this pattern has been observed before previous price spikes. However, note that there must be sufficient demand in the spot market for this scenario to materialize.
