Bitcoin Market Update

Bitcoin’s price has been dropping rapidly over the past few days, causing concern among investors about the potential end of the bull market.

However, there remains hope as the market finds support in a critical area.

Technical Analysis

By Edris Derakhshi (TradingRage)

The Daily Chart

On the daily chart, the asset has seen a steep decline since last week and has yet to recover. The 200-day moving average, near the $80K support level, is currently preventing further downward movement.

A rebound to the $90K level seems likely. However, if this level is broken to the downside, a drop to the $74K area may be probable.

The 4-Hour Chart

The 4-hour chart provides a more optimistic view, showing the market bouncing from the $80K level. The RSI’s bullish divergence had previously indicated this possible move.

However, the trend will only be considered bullish again after the price rises above the $87K high, necessitating higher highs and lows.

Sentiment Analysis

By Edris Derakhshi (TradingRage)

Funding Rates

Analyzing sentiment in the futures market through funding rates offers valuable insights. This metric shows whether buyers or sellers dominate the futures market.

Recently, the funding rates metric has reached the most negative reading in several days, suggesting that sellers are aggressively executing leveraged shorts. While this may seem concerning, it could signal a potential end to the downtrend. A small bullish pullback might trigger a short-liquidation cascade, pushing prices higher.

The upcoming days are crucial for BTC’s mid- to long-term future.