Bitcoin Price Forecast: Signs of Positive Momentum as Funding Rates Drop Below Zero
Bitcoin enthusiasts have reason to anticipate a positive development, as a recent bullish divergence on the two-hour Bitcoin chart suggests a potential respite in the current price action. Analysis by Josh of Crypto World indicates that the Relative Strength Index (RSI) is showing higher lows despite the price displaying lower lows, implying a possible neutral or mildly bullish trend in the near future.
Presently, the trend for Bitcoin remains bearish, marked by lower highs and lower lows on the two-day chart. However, the recent bounce suggests a temporary pause in this downward trend.
In terms of support and resistance levels, Bitcoin has rebounded from a critical support zone ranging from $56,000 to $57,000. If the price were to dip below $56,000, the next major support is projected to be between $51,000 and $53,000. On the other hand, notable resistance levels are observed at $60,000 to $61,000, $63,000, and a significant barrier between $67,000 and $68,300.
Regarding liquidity and funding rates, short-term liquidity is predominantly positioned above the current Bitcoin price, particularly around $59,800 to $60,200 and $62,000. Furthermore, funding rates across exchanges have turned slightly negative, indicating a potential bullish momentum and reinforcing the likelihood of a short-term relief in the price.
Shifting attention to Ethereum, the cryptocurrency is presently maintaining a strong position above crucial support levels, signaling a period of short-term consolidation.
Ethereum has successfully bounced from a notable support area ranging from $2,000 to $2,150, which has remained unbroken. The price is also holding above a critical “golden pocket” support zone ranging from $2,150 to $2,200, with additional support around $2,200. In terms of resistance, the next significant level for Ethereum is around $2,800, followed by further resistance near $3,200, which previously served as a support area.
In conclusion, the recent market indicators point to a potential positive momentum for Bitcoin, driven by a decrease in funding rates and the emergence of a bullish divergence. However, investors and traders must remain vigilant and carefully monitor the evolving market conditions to make well-informed decisions.
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