- The short-term outlook of Bitcoin looks bearish
- Analysts said investors should focus on the mid-term and long-term of Bitcoin
- Several bullish factors are suggesting an upside is imminent
Bitcoin News Today – Bitcoin has been hovering around the highs of $10,000s over the past couple of days despite the surge earlier this week. At press time, the digital currency is trading around $10,900 range, with a decrease of less than one percent over the past day. Crypto analysts are saying that investors should be favoring longs right now.
Bitcoin Is Poised to Move Higher – Here’s Why
A digital currency trader recently shared a chart, saying that he believes sellers (short position holders) may be trapped right now. Chances are this may result in a situation where BTC surges higher, thereby liquidating or stopping out these sellers. In a post, he said:
“I keep seeing bears talking about trapped buyers here. I am seeing the opposite. Basis still favoring opening up a long. CVD showing more of a turn than price, and I would not look at it as leading but as being sellers absorbed, taking a “101” level backside short. $BTC.”
Validating the expectations of more upside moves is the state of Bitcoin futures funding rates. The funding rate of a digital currency derivate is the fee that long positions pay short positions to keep the price of the derivative trades in line with the price of the index, which derives its price from the spot markets.
Bitcoin (BTC) Price Today – BTC / USD
According to data from a digital currency derivatives tracker – ByBt – the funding rates of BTC futures markets are negative across the board. This includes top trading platforms such as Huobi, BitMEX, Binance, and ByBit.
This may suggest to investors that the prevailing trend of Bitcoin (BTC) is bearish. However, negative funding rates are usually seen before the reversal of the trend. To some, negative funding rates mean sellers are too aggressive, increasing the chances of a reversal.
Bitcoin Price Action
The world’s most dominant digital currency has been trading in a tight range over the past couple of days. After losing about $2k from the highs of $12.5k last month, Bitcoin has been struggling to break over its major hurdles. The digital currency has not been able to hold gains over the $11k mark, even though it has tried severally.
At press time, almost all the top digital currencies on the market are in the red. Bitcoin is down by less than one percent over the past day, as it is hovering around the $10,900 mark. The near term outlook of the digital currency look bearish, but the mid-term and long-term are pretty much bullish, according to indicators.