With the possibility of bitcoin breaking free from chains at resistance levels, Decentrader sounded cautious optimism over BTC price action. The trading suite believes the chances of a low-timeframe decline remain, despite on-chain metrics putting in rare bull signals.
Decentrader said the popular crypto is at a relatively neutral level with clear zones of resistance and support above and below. The sentiment is in neutral rather than in the fear territory. There are also encouraging signs, low funding rates, and a negative long/short ratio, from derivatives markets. Decentrader highlighted that there has been a sustained period of negative funding rates. There has been an open interest (OI) drop over time and long/shorts ratio going negative.
However, Coinglass data shows that funding rates are still overall negative. Analysts believe a downturn could produce a rebound at $39,000 should bulls not be too rattled by the $40,000 mark breach. They also note resistance levels on the upside at $47,950 and $52,660. But currently, it’s a wait-and-see.
Investors are well versed with bitcoin’s high volatility but it sends new investors into a frenzy who end up selling their digital assets to prevent heavy losses. The slump over the past 24-hours is being described as unprecedented as BTC had touched the high of $45,661 on Thursday. Analysts say bitcoin’s market behavior does not respect any individual or investor’s opinion. In fact, it is of the broader confluence of reactions in the market per time.
Analysts said the past few days’ renewed zeal shows bitcoin’s growth path to break through the $48,000 resistance level. According to CoinShares, there’s a continuous accumulation of bitcoin by institutional investors. The demand was instrumental in the revival of BTC price from $35,000 to $45,000 within a week.