BTC price preserves $16.5K, but funding rates raise risk of new Bitcoin lows

1 year ago

Bitcoin (BTC) staged a humble betterment connected Dec. 29 arsenic United States banal markets rebounded successful step.

$10,000 BTC terms targets stick

Data from Cointelegraph Markets Pro and TradingView showed BTC/USD recovering supra $16,600 astatine the Wall Street unfastened aft wicking beneath the $16,500 for a 2nd day.

The brace remained unappealing to traders, galore of whom feared a deeper retracement whitethorn inactive hap astir the caller year.

In a list of imaginable “capitulation targets,” Crypto Tony doubled down connected $10,000 and little for Bitcoin, portion besides revealing expectations for Ether (ETH) to dip arsenic debased arsenic $300.

“Things alteration quick, but if we deed these areas I statesman to ladder,” portion of accompanying commentary read.

Daan Crypto Trades meantime enactment the existent spot terms astatine the bottom of an country which “must hold” for BTC bulls to person a changeable astatine upside.

“The full marketplace looks bad... Thing is that immoderate altcoins look adjacent worse,” Il Capo of Crypto continued, predicting forthcoming altcoin losses of up to 90%.

The downside thesis was supported by derivatives markets connected the day, with backing rates affirmative portion terms enactment failed to rally.

“Layman terms, Long/Short ratio is affirmative archetypal clip since May, means much Longs than Shorts now, OI and Funding is positive, means radical are betting connected perpetual marketplace BTC volition pump, terms operation looks atrocious and this tin beryllium easy different section apical present and dump. Be careful!” fashionable commentator aQua summarized.

A somewhat much hopeful position came from Blockware caput expert Joe Burnett, who argued that a achy play successful Bitcoin’s past was dilatory coming to an end.

“Everyone is bearish, yet Bitcoin is inactive trading astir the aforesaid terms it was successful June ($17.5k),” helium reasoned.

“The mining manufacture has been decimated, and galore of the anemic hands (BTC and ASICs) person been purged. Soon we volition statesman different dilatory ascent.”

U.S. dollar spot "wants to bounce"

Short-term BTC terms enactment got a boost from U.S. equities connected the day, with the S&P 500 up 1.4% and the Nasdaq Composite Index gaining 2.1% successful the archetypal hour’s trading.

The U.S. dollar continued a broader consolidation aft 2 consecutive days of gains for the U.S. dollar scale (DXY).

“Bitcoin swept the debased / 16.5k, filled the FVG and enactment successful a 3rd thrust with aggregate H1 bullish divergences. It is present oregon ne'er for the bulls to instrumentality this backmost up,” entrepreneur Mark Cullen commented.

“Lose the 16.2k level and the yearly debased volition beryllium successful menace & little + $DXY looks similar it wants to bounce!”

With conscionable 2 days until the weekly, monthly, quarterly and yearly close, BTC/USD was down astir 60% year-to-date, 3% for December and 14.2% successful Q4, information from Coinglass confirmed.

The views, thoughts and opinions expressed present are the authors’ unsocial and bash not needfully bespeak oregon correspond the views and opinions of Cointelegraph.

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