Blockchain intelligence firm, Santiment, has reported that the funding rate for Bitcoin (BTC) on Bitmex has reached its most negative ratio since March this year. Santiment has predicted that the cryptocurrency’s price may soon soar as a result. In the past, the possibility of BTC’s price rising has increased when investors and traders overwhelmingly assumed that its price would drop. However, this theory has yet to play out since BTC’s price had dropped by approximately 4% between May 6 and yesterday.
At present, CoinMarketCap has indicated that BTC’s price has gained 0.27% over the previous 24 hours, standing at $27,673.51. Unfortunately, this positive price movement was not able to flip its weekly price performance into the green, and BTC was still down 2.86% over the past seven days. Technical indicators on BTC’s daily chart suggest that the crypto’s price will continue to fall in the following 24-48 hours. The descending triangle, formed after BTC’s price printed lower highs over the last two weeks, suggests that there is still overwhelming sell pressure present on the market leader’s chart.
Should BTC’s price succumb to this sell pressure, it will likely drop to $26,600 in the short term. This bearish thesis is supported by the recent bearish cross between the 9-day EMA and 20-day EMA, which suggests that BTC has entered into a short-term downtrend. A confirmation of the bearish thesis will be when BTC’s price closes below the $27,380 level.
On the other hand, BTC maintaining a position above this level will either result in a brief consolidation between $27,380 and $28,420, or a break above the 9-day and 20-day EMA lines at around $28,700. In the meantime, readers are advised to conduct their own research and due diligence before making any investment decisions. Any action taken by the reader is strictly at their own risk. Coin Edition and its affiliates will not be held liable for any direct or indirect damage or loss.
In conclusion, while BTC’s funding rate on Bitmex has reached its most negative ratio since March, the possibility of its price rising has yet to be seen. Technical indicators on BTC’s daily chart suggest that the cryptocurrency’s price will continue to fall in the short term, with a potential drop to $26,600. However, maintaining a position above $27,380 may result in a brief consolidation or a break above the 9-day and 20-day EMA lines. Therefore, investors and traders should conduct their own research and due diligence before making any investment decisions.