Bitcoin (BTC) Showing New Short-Term Bullish Signal, Analyst Says
- PHPzOriginal
- 2024-08-21 03:18:08815browse
Bitcoin (BTC) is showing a new short-term bullish signal, as evidenced by a short squeeze and extremely negative funding rates.
Bitcoin (BTC) price showed a new short-term bullish signal on March 29, together with a short squeeze and extremely negative funding rates. As noted by the pseudonymous analyst Josh of Crypto World, for now, a bullish move seems to be unfolding.
Bitcoin price still ranging, showing a bearish lower highs and lows trend
Not much has changed over the last day, the analyst said. BTC’s price is still ranging between support at just above $53,000 and resistance around $68,000. This range still shows a bearish trend, with lower highs and lows.
Major support zones include $56,000 to $57,000 and $51,000 to $53,000. Resistance levels are at $60,000 to $61,000, followed by $62.8k to $63k, and a significant level between $67,000 and $68.3k.
Bitcoin price recently bounced from a support line (orange), which could show a bullish move. Historically, such bounces have led to short-term relief in price. The coin is currently removing liquidity above $60,000. One still needs to watch liquidity around $61.9k to $62.1k, he noted.
Bitcoin price showing a bullish short squeeze, with high short interest
This breakout from lower support recently showed a short squeeze, which is a sign of bullish momentum. Such momentum could lead to further upward price movement.
Moreover, as the analyst highlighted, funding rates are a critical aspect to consider. Currently, they are extremely negative, which means that most traders are shorting Bitcoin.
Negative funding rates indicate a high demand for short positions and a low interest in long positions. This situation often leads to a scenario where the minority—those holding long positions—benefit, as negative funding rates require short sellers to pay fees to long holders.
Negative funding rates suggest most traders are bearish, which could lead to upward pressure if short positions are liquidated, the analyst noted.
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