Bitcoin eyes $58K as spot-driven BTC bounce makes rally ‘look sustainable’
Bitcoin eyes $58K as spot-driven BTC bounciness makes rally 'look sustainable'
Organic growth from spot traders opens up key resistance levels closer to $threescore,000 for BTC/USD, analysts argue.
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Bitcoin (BTC) is riding high on the back of a "very low and healthy" indicator, according to one market analyst, which could propel it to a cardinal resistance level at $58,000.
In a tweet on Tuesday, analyst Lex Moskovski noted that futures funding rates are suggesting this week's BTC toll run has been completely organic.
"Depression and healthy" funding rates beacon bulls
Funding rates are a pop metric for measuring the health of BTC price movements. They substantially show which traders are on the right side of the bet (long or short) — a high funding rate on a platform ways longs are "paying" shorts, while low funding rates imply the opposite.
Negative rates are what analysts look for when determining if any upside is likely to endure or is due in the curt term.
Currently, conditions are right — the move upwardly to $55,000 was likely not fueled by speculative trading activeness, said Moskovski.
"Funding is very depression and healthy," he wrote.
"This run up in Bitcoin came from spot and looks sustainable."
Long-term trends remain firmly intact
How high BTC/USD could go and notwithstanding remain sustainable is Tuesday's topic of debate amongst technical observers. For Sven Henrich, creator of analysis house NorthmanTrader, key Fibonacci levels, in particular, are worth eyeing.
Specifically, the 0.618 Fibonacci level, equally e'er a source of support and resistance aims, now sits at simply above $58,000 — as well the site of a Bitcoin all-fourth dimension high from February, which held for multiple weeks.
Henrich and popular Twitter account Rekt Capital, meanwhile, highlighted moving averages and a 76-twenty-four hours technical uptrend as key to determining support. These have independent BTC/USD throughout recent price dips, with the 100-day and 21-week figures regarded as a line in the sand for bulls.
"Toll pulled back towards information technology on the retrace but in the end didn't really affect it. It didn't have to," Rekt Majuscule commented about the 76-day trend.
Both perspectives indicate that beyond the short term, Bitcoin has not crossed any red lines, which could spell the stop of its bull run.
Source: https://cointelegraph.com/news/bitcoin-eyes-58k-as-spot-driven-btc-bounce-makes-rally-look-sustainable
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