Bitcoin price consolidated above the $60,000 level and failed to continue its uptrend. But it will soon become clear whether the market will continue to decline or reach a new all-time high.
Bitcoin Price Analysis: Technical Data
By TradingRage
The daily chart
On the daily chart, the price was rejected from the $70,000 resistance level and is on its way to retest the $60,000 support zone.
If Bitcoin falls below $60,000, a massive decline into the $52,000 area becomes much more likely. However, if the price manages to reclaim the $68,000 mark, creating a new all-time high would likely only be a matter of time.
Source: TradingView
The 4 hour chart
A look at the 4-hour chart shows that the price has been creating a consolidation pattern over the past few weeks. The lower boundary of the pattern has stopped the price from falling lower recently, but the market is approaching the same area again.
With the Relative Strength Index showing values below 50%, a breakdown of the pattern could be likely this time and could have somewhat catastrophic consequences as it could lead to a much deeper decline.
Source: TradingView
Sentiment analysis
By TradingRage
Bitcoin funding rates
With Bitcoin's recent price drop, investors are wondering whether the bull market is over or a natural price correction is taking place. Analyzing futures market metrics can provide valuable insights into the overall sentiment of the market.
This chart represents Bitcoin funding rates, which measure whether buyers or sellers are executing their orders more aggressively. Positive values indicate optimism, while negative values indicate bearish market sentiment.
As can be seen from the chart, funding rates have dropped significantly following the recent market correction. The metric now shows values close to zero, meaning market sentiment is now neutral. While not necessarily a good thing, low funding rates mean that the futures market has cooled, and if enough spot market demand arrives, the price could see a sustained increase in the coming weeks.
Source: CryptoQuant
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Cryptocurrency charts from TradingView.
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