Bitcoin‘s (BTC) price decline has persisted for a third day, despite initial attempts at recovery. Bulls are attempting to maintain support at higher levels, relying on inflows from spot Bitcoin Exchange Traded Funds (ETFs) and the upcoming halving event. However, bearish traders argue that the anticipated rally may not materialize due to larger economic trends and industry-specific factors.
Based on a recent study by cryptocurrency company CryptoQuant, there is still a significant possibility that the market’s top performer could experience a price drop despite positive signs. The research suggests that market recoveries may be hindered by funding rates and correction thresholds.
Funding Rates Could Affect Bitcoin’s Price
Bitcoin’s funding rates have reached impressive heights near 2021’s bull market peaks, potentially leading to a market reversal. While positive funding rates usually indicate a bullish trend, extraordinarily high figures can result in price corrections within the market. Furthermore, Bitcoin setting a new all-time high last month introduces the greatest resistance level for its price yet.
Currently, Bitcoin is priced at $63,300 following a decrease in value over the weekend that was amplified by substantial sell-offs. Prior to this dip, the cryptocurrency had experienced minor declines beneath its peak of $70,000 and moved steadily in place.
“The Bitcoin price is currently moving within a well-defined range that has expanded or contracted by approximately 20%. This situation presents an excellent opportunity for major investors to enter the market in large numbers. Since the last discounted market, Bitcoin’s price has surged more than threefold. During all previous corrections of around 20%, there hasn’t been a premium period like the present one.”
Retail Flows Show Bearish Trend
In addition, the retail trading activity may indicate reluctance near current prices based on historical trends. The data reveals that such high retail involvement has not been observed for the past three years.
Retail investors have been selling off in large numbers after the significant price drop over the last two days, which historically can be a sign of an impending market top.)
Due to the approaching IRS tax deadline and larger economic influences, stock and cryptocurrency prices significantly dropped, with Bitcoin’s value dipping under $63,000.
Mark Cuban Wires $275 Million In Taxes, Sends Crutial Message To Community
Read More
- SOL PREDICTION. SOL cryptocurrency
- USD ZAR PREDICTION
- BTC PREDICTION. BTC cryptocurrency
- CKB PREDICTION. CKB cryptocurrency
- EUR ILS PREDICTION
- USD COP PREDICTION
- USD PHP PREDICTION
- LBT PREDICTION. LBT cryptocurrency
- SHI PREDICTION. SHI cryptocurrency
- Best JRPGs That Focus On Monster Hunting
2024-04-15 23:20