Bitcoin’s Momentum Stalls, But Negative Funding Gives a Boost to Bulls
- Bitcoin’s upwards momentum has stalled following the promising push higher seen yesterday
- This allowed the cryptocurrency’s price to surge up towards $10,800, which is where it met some serious resistance that slowed its uptrend
- Despite rejecting at this level, the subsequent downtrend has not been that intense, indicating that bulls may still have some underlying strength
- One analyst is noting that although BTC is beginning to look bearish, the fact that funding rates are still negative across the board is a positive sign for its near-term outlook
- Because there’s a cost premium to short, it may incentivize bears to flip sides and aid bulls in pushing its price higher
The aggregated cryptocurrency market has been closely moving in lockstep with Bitcoin throughout the past several days and weeks.
Although this caused most altcoins to plummet lower earlier this week, it allowed them to see some relief yesterday when BTC made a significant push higher that sent its price up to highs of $10,800.
At this point, the cryptocurrency faced some resistance that slowed its ascent and caused its momentum to stall, subsequently dropping back down to $10,600.
One analyst is now noting that although structurally Bitcoin is looking somewhat bearish, the fact that funding is negative across the board makes him wary of entering any short positions.
Bitcoin Struggles to Maintain Momentum Following Rally to $10,800
At the time of writing, Bitcoin is trading down just over 1% at its current price of $10,645.
The crypto has been finding some support just below its current price level, but it remains unclear how long this will last.
This recent move came about close on the heels of the decline beneath $10,200, but for it to propel Bitcoin higher, bulls must break $10,800 and take aim at $11,000.
Analyst: BTC Flashes Hints of Weakness, But Funding Remains Negative
He does note, however, that negative funding is working in bulls favor at the present moment.
“Looks a bit bearish, but I’m not shorting while funding is negative across the board. First levels of interest: 10400 & 10900.”
Image Courtesy of Byzantine General. Chart via TradingView.
Whether or not Bitcoin can push higher may depend largely on how it continues reacting to the key resistance just above its current price.
Even if it does break above $10,800, the selling pressure found around $11,000 will be significant, and potentially cause it to reel lower once again.
Featured image from Unsplash. Charts from TradingView.