Bitcoin rises as the old markets rise. The leading cryptocurrency has risen nearly 5% in the past 24 hours, surpassing many altcoins, with its focus focused on BTC.
The cryptocurrency appears to be taking advantage of the decline in the value of the US dollar. This has historically sent both gold and Bitcoin higher along with the stock market.
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Still, there seem to be some technical rationale behind Bitcoin's continued rise. So, the cryptocurrency managed to close its weekly candle above the $ 10,000 key support, a technical trend that analysts say gives BTC a chance to recover.
Currently, Bitcoin is trading at $ 10,750, and it rose above $ 10,800 an hour or two ago. This is the highest value the cryptocurrency traded in a week.
Analysts are optimistic that BTC is continuing to rise as techniques and fundamentals continue to show further upswing in business.
Chart from TradingView.com of BTC's price action over the past few days
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Funding Rates Confirm Expectations For More Bitcoin Increase
Funding rates of Bitcoin futures markets negative Despite the ongoing rally, it's going well for more.
The funding rate is the fee that long positions pay for short positions to ensure that the price of a derivative is traded close to / at the same price as the spot market price.
Negative financing ratios indicate that shorts are currently being heavily positioned.
While this leads some to believe that Bitcoin is ready to move lower due to potential selling pressure, negative funding rates are often seen before BTC price rallies. It seems that the market mostly opposes the majority; In this case, this means that Bitcoin continues to move higher to shake the short position holders.
The techniques agree with the assessment that Bitcoin will soon rise.
Referring to the table below, an analyst stated that it would not be wise to sell after the current retracement of Bitcoin has occurred:
“Kick yourself into the first test of one of the most important support and resistance returns we've had in years if you're selling after a 20% retracement from highs. Context is everything, ”he explained.
Image Courtesy of Cantering Clark. Chart via TradingView.
As the chart shows, Bitcoin's recent price action has actually turned from a bearish to an uptrend. The cryptocurrency managed to leap cleanly from the $ 10,000 base horizontal, voiding the bearish state that some expected to play.
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Featured Image from Shutterstock Price tags: xbtusd, btcusd, btcusdt Charts from TradingView.com Bitcoin Surges Towards $10,800 as Recovery Continues: Here's What Comes Next