Bitcoin has been caught in the throes of an immense bullish trend throughout the past several days, with buyers in full control of its price action as the cryptocurrency puts some serious distance between its recent lows.
It is important to note that the recent rejection at $23,700 proved to be quite significant for the cryptocurrency, as its price has been sliding lower ever since.
One trader is now noting that where it trends in the mid-term should depend largely, if not entirely, on whether or not bulls can maintain their momentum and build strong support throughout the lower-$20,000 region.
Any sustained dip below $20,000 would be dire for the crypto and potentially cause it to see strong mid-term downside.
One trader is now noting that Bitcoin is beginning to flash some signs of weakness on its chart, however, he notes that its macro strength and recent break above its all-time highs may give room for it to see further upside.
He also notes that futures funding has been growing “aggressively bearish-biased” over the past several hours, which could be a grim sign.
Bitcoin Struggles to Extend Momentum as Consolidation Begins
At the time of writing, Bitcoin is trading down just under 1% at its current price of $22,670. This is around the price at which it has been trading throughout the past few days.
Yesterday the crypto rallied as high as $23,700 before it lost its momentum and slid lower. The selling pressure at this price region was significant, signaling that its rally was over-heated.
Today’s price action has mainly consisted of consolidation, and it does seem to be poised to break back above $23,000 in the near-term.
BTC Futures Funding is Bear-Biased as Chart Shows Signs of Weakness
He also notes that BTC futures funding, across the board, is beginning to show signs of being heavily bear-biased.
“Normally I’d say this looks bearish, but given all the circumstances surrounding BTC right now, I almost think it’s more likely this breaks up than down. Either way, it’s consolidation, and consolidation leads to larger moves… With that said, futures funding across the board is getting aggressively bearish-biased right now.”
Image Courtesy of Jonny Moe. Source: BTCUSD on TradingView.
Bitcoin’s upcoming weekly candle close should shed some light on the sustainability of this latest leg higher.
Featured image from Unsplash. Charts from TradingView.