Bitcoin
Bitcoin Could be Coiling Up for a Move Past $11,000 Due to These Events
Cole Petersen | Oct 03, 2020 | 16:00
- Bitcoin’s price has been seeing an incredibly tight bout of consolidation throughout the past 24-hours, forming a $50 trading range as it stays within the mid-$10,500 region
- This has created an air of uncertainty regarding where it may trend next, as it could easily see a swift move in either direction
- That being said, the cryptocurrency’s ability to find stability in the face of a barrage of multiple bearish news developments is positive
- One trader is now noting that he believes that Bitcoin’s current price action is its way of coiling up before it makes a big move past $11,000
Bitcoin and the entire crypto market have been caught within a bout of sideways trading throughout the past several days and weeks, with both sides being unable to garner any clear momentum.
This has created one of the tightest consolidation channels BTC has seen in months, which could indicate that the next movement will be massive.
That being said, one trader is noting that a continued bout of choppy trading could push funding even further into the negative zone, which will help provide fuel for bulls to spark a massive move higher.
Bitcoin Consolidates Around $10,500 as Bulls and Bears Reach an Impasse
At the time of writing, Bitcoin is trading down marginally at its current price of $10,540. This is around where it has been trading throughout the past couple of days.
Ever since BTC dipped to lows of $10,400 earlier this week following news regarding President Trump contracting the deadly virus currently circulating throughout the globe, its consolidation channel has been narrowing.
Throughout the past 24 hours, Bitcoin has been trading between $10,500 and $10,580, with this range narrowing even further throughout the past few hours.
Analyst: These Events Could Be Pushing BTC’s Funding Lower
While speaking about where he expects Bitcoin to trend in the days and weeks ahead, one analyst noted that its negative funding rates are a positive sign.
He also explained that fear resulting from a combination of BitMEX’s legal issues, uncertainty about the President’s health, and low investor sentiment could help push funding rates even lower.
“BitMEX legal issues – Trump got COVID19 – funding already negative. Wouldn’t it be a shame if BTC kept chopping below the CME level (blue) and made funding go even more negative and then on Monday we pump straight to 11k rekting everyone that go bearish during the weekend.”
Image Courtesy of Byzantine General. Chart via TradingView.
If this push higher does take place as he suspects, a high quantity of open short positions will act as fuel for a move significantly higher.
Featured image from Unsplash. Charts from TradingView.
