Bitcoin Confronts Potential Decline Amid High Funding Rates and Market Resistance
Summary:
Bitcoin faced a potential decline from its trading range amid market resistance, despite hitting a 26-month high of $53,000. The absence of bitcoin's upliftment amid expectations of increased investor interest in ETFs reflects a shift from the 'Only Rise' era. Popular traders urged patience and suggested waiting for clear market signals. The dip in Bitcoin's value could result from high funding rates and the potential impact of Nvidia's upcoming earnings report on the market.
Bitcoin's value confronted the possibility of declining from its current range as the stock market in Wall Street was launched on February 21, with a strong resistance noted. The steadfast reevaluations of the lowest Bitcoin value over the past week were observed through Cointelegraph Markets Pro and TradingView data. Post reaching a 26-month high of $53,000, the cryptocurrency faced an influx of selling pressure. Despite potential boosters, like the expectation of increased investor interest in spot exchange-traded funds (ETFs), the Bitcoin scene remained bleak.
Crypto trader, Crypto Chase underscored that Bitcoin is grappling with the so-called fair value gap (FVG) on daily timelines, as demonstrated via Fibonacci retracement levels. “Bitcoin's outlook may seem dreadful, but I’ve witnessed Bitcoin bounce back from worse,” was part of his comment on X (formerly Twitter). He further suggested potential strategies for traders depending on Bitcoin's closing value for the day and possible retracement.
Keith Alan, co-founder of the trading resource, Material Indicators, emphasized in his recent video update that relying on ETF inflows may not always guarantee a sturdy market. As per Alan's update, despite Bitcoin's ETF demand, the notable pullback indicates that the era of 'Only Rise' in Bitcoin's journey has ended and major Bitcoin holders are offloading their holdings amidst the ETF demand.
However, Daan Crypto Trades, a well-known trader, advocated patience and advised traders to wait for confirmation before making a move. Another trader, Jelle, known for his bullish outlook, mirrored Daan's sentiment.
As per the analysis of trading firm QCP Capital, the Bitcoin value dip could be due to high funding rates, which could lead to price drop after a significant increase. They also highlighted the earnings report from tech giant, Nvidia, as a potential turbulence-inducing factor in the market due to its impact on US equities and crypto prices.
Daan Crypto Trades echoed this sentiment on the Nvidia earnings report, suggesting that a significant beat and price increase could lead to market volatility. Daan preferred a cool-off period to prevent markets from overheating. It is crucial to remember, every investment and trading move poses risks and requires individual research before decision-making.
Published At
2/21/2024 6:24:21 PM
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