Bitcoin’s 20% rebound in one day is one of its biggest ever — But there’s a c...
Bitcoin surged 20% from $30,500, but its overall rally is beginning to show signs of weakness. The price of Bitcoin (BTC) rose 20% on Jan. 12, from $30,500 to around $36,600, across major exchanges. But while the rebound after the correction has been strong, there are two warning signs.BTC/USDT 1-hour price chart (Binance). Source: TradingView.comFirst, the funding rate in the futures market remains high. The funding rate is a mechanism that incentivizes the minority of the market. For example, if there are fewer short-sellers in the market, then buyers have to pay short-sellers a fee....
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The minimal target of the upward trend has been reached. Bitcoin’s price is in rebound before a new push. What direction will Bitcoin choose? The upward trend didn’t follow through, but despite that, Bitcoin’s price has still reached its nearest target. The level of $418-19 was a peak of a bearish rebound within a larger scale trend. Movements like these are usually followed by a rebound towards the larger structure, which in our case has started at $403. The peak of that rebound is going to be around $410.5, where Bitcoin’s price may suddenly stop and pick a direction.
Bitcoin is continuing its upward movement. The short-term upward structure can turn out to be a wave of a flat, which will be followed by a downward rebound. Is the downward rebound over? The minimal correction targets have been reached, so the movement is about to be decided. Bitcoin’s price has fortified inside a flat, at the level of $540, and an upward impulse followed. But Bitcoin’s price did not go beyond the weekly flat’s limits ($518-560). Hence, there is a probability of a continuation of that flat. If that is the case, Bitcoin’s price is likely to rebound around $560, and form a....
Bitcoin’s price is approaching a critical line, where the following direction of the trend is likely to be decided. Is it a rebound or a turn? Bitcoin’s price is in a rebound toward the downward trend. The fact that Bitcoin’s price didn’t fall lower and faster indicates that the bulls are holding it at the current level. There is always a chance for a turn. But for a more certain signal, this downward movement has to become a rebound, instead of the first downward wave. In that case, the bulls will win the advantage. The buyers will then have to fortify at the level of $418-19, thus....
After a continuous decline back in the beginning of March, Bitcoin’s price is now undergoing a period of tentative growth. Will this end up in a new, even sharper fall? What trend should we expect in April? The first month of spring has passed. As was predicted, Bitcoin’s price underwent a downward rebound toward $400-390. The likelihood of that rebound was high, due to the price reaching a key level, while moving along an upward trend. After that, the market had to choose a new trend, and it needed a rebound to do that. Bitcoin price has recoiled and stopped at another key level. At such....
Bitcoin’s price is in a correction towards the downward trend. The most likely peak of that rebound is getting close. That means that soon a new development will be chosen by the market. At which mark is the price most likely to undergo a downward rebound? Bitcoin’s price has formed a short-term flat under a key resistance line. Whether the downward trend will continue or a turn to decline will form is dependent on the future reaction of the price at the key levels. The key resistance line has descended a little bit toward $455. Several significant instruments are intersecting at that....