The Bitcoin price has shown low volatility lately. Its price is trading in a tight range, under $36,000. While the dominant cryptocurrency is much higher than where it was this time last year, it is down more than 40% since its peak in April.<\/p>\n
Bitcoin price continues to range in a small range, unable to find a clear direction.<\/p>\n
The key level the Bitcoin price has to over come is $38,000. Above it, the rally would likely get reignited, especially at a point where the futures market is not crowded.<\/p>\n
Many traders in the cryptocurrency space are looking at the daily chart of the Bitcoin price. <\/p>\n
If the Bitcoin price exceeds $38,000, it would break out of a crucial technical formation, as seen below in a chart shared by the pseudonymous trader TeddyCleps.<\/p>\n
The Bitcoin price daily chart.<\/p>\n
But, the problem is that Bitcoin is continuously trading in a small range, unable to either break upwards or correct downwards.<\/p>\n
How Would Bitcoin Break Above $38k?<\/p>\n
There are two factors that could push Bitcoin upwards, above $38,000.<\/p>\n
The first is the miner capitulation bottom signal. Recently, the Bitcoin hash rate has plummeted due to Chinas growing pressure on the local mining sector.<\/p>\n
Historically, whenever the hash rate dropped hard, it marked a bottom, as it made many miners capitulate.<\/p>\n
The second is the consistent selling pressure coming from the futures market.<\/p>\n
Across major exchanges, the futures funding rate of Bitcoin has frequently been negative in recent weeks.<\/p>\n
This means that many traders in the crypto derivatives market are shorting or selling Bitcoin, instead of buying.<\/p>\n
When the selling pressure becomes too intense, it opens up the possibility of a short squeeze.<\/p>\n
In the Bitcoin futures market, a mechanism called funding rate exists. Exchanges use this mechanism to reward the minority in the market.<\/p>\n
For example, if there are more buyers in the market, the futures funding rate would typically hover above 0.01%. This means that buyers have to reward sellers 0.01% of their position every eight hours, and vice versa.<\/p>\n
In recent weeks, the Bitcoin futures funding rate on major exchanges has been hovering at around -0.01%.<\/p>\n
Since this kind of market incentivizes buyers, it could increase the probability of a short squeeze, especially when met with a strong fundamental catalyst.<\/p>\n
Still, there are concerns shown by economists and analysts toward the crypto market. Namely, the negativity around stablecoins and the mining sector persist within the media circles.<\/p>\n
<\/p>\n
Follow this link: The Bitcoin price has shown low volatility lately. Its price is trading in a tight range, under $36,000. Continue reading
\nThis Is The Key Level To Reignite The Bitcoin Rally - Forbes<\/a><\/p>\n","protected":false},"excerpt":{"rendered":"