Bitcoin price battles $23K as data says US in ‘technical recession’

TA: Bitcoin Price Eyes Another Key Upside Break Above $41.5K

Bitcoin started a fresh increase above the $40,000 resistance against the US Dollar. BTC remains supported and might rally again above the $41,500 resistance. Bitcoin reclaimed the $40,000 level and might continue to rise. The price is trading above $40,200 and the 100 hourly simple moving average. There is a major bullish trend line forming with support near $39,850 on the hourly chart of the BTC/USD pair (data feed from Kraken). The pair might correct lower, but the bulls might remain active near the $40,000 zone. Bitcoin Price Remains Elevated Bitcoin price spiked towards the $41,500 level before it faced sellers. BTC reacted to the downside and even dived below the $40,000 level. However, the bulls were active near the $39,000 zone and the 100 hourly simple moving average. There is also a major bullish trend line forming with support near $39,850 on the hourly chart of the BTC/USD pair. A low was formed near $39,300 and the price started a fresh increase. There was a clear move above the $40,000 resistance zone. Bitcoin even climbed above the $40,800 level. It is now consolidating near the $41,000 resistance zone. There was a test of the 23.6% Fib retracement level of the upward move from the $39,308 swing low to $41,470 high. Source: BTCUSD on TradingView.com On the upside, the price is facing resistance near the $41,200 level. The next major resistance could be near the recent high or $41,600. A clear move above the $41,600 level could open the doors for another rally. In the stated case, the price might rise towards the $42,500 level. Any more gains might send the price towards the $43,200 level in the near term. Dips Supported in BTC? If bitcoin fails to clear the $41,600 resistance zone, it could start a downside correction. An immediate support on the downside is near the $40,500 zone. The next major support is seen near the $40,300 level. It is near the 50% Fib retracement level of the upward move from the $39,308 swing low to $41,470 high. The main support is still near the $40,000 zone, below which the price might test $39,000. Technical indicators: Hourly MACD – The MACD is now losing pace in the bullish zone. Hourly RSI (Relative Strength Index) – The RSI for BTC/USD is well above the 50 level. Major Support Levels – $40,500, followed by $40,000. Major Resistance Levels – $41,200, $41,600 and $42,500.

Bitcoin Funding Rates Remain Negative For More Than A Week

On-chain data shows the Bitcoin funding rates have mostly remained negative for more than a week now. If past trend is anything to go by, this may mean that a bottom could be near. Bitcoin Funding Rates Have Now Remained Mostly Negative For More Than Seven Days As pointed out by an analyst in a CryptoQuant post, the Bitcoin funding rates have been negative in the past week for the most part. The “funding rates” is an indicator that measures the periodic fee Bitcoin futures traders have to pay each other in order to hold onto their positions. When the value of this indicator is positive, it means long holders are currently dominant and are paying a premium to short traders. Such values occur when the market sentiment is majorly bullish. On the other hand, negative funding rates imply shorts now outweigh the longs and are willing to pay a fee to the longs. This kind of trend may show that the majority sentiment among traders is bearish at the moment. Related Reading | Why Bitcoin Could Hit $90K By The End Of 2022, According To This Prediction Now, here is a chart that highlights the trend in the BTC funding rates since April of last year: Looks like the value of the indicator has been negative recently | Source: CryptoQuant As you can see in the above graph, the Bitcoin funding rates have been mostly negative for more than a week now. Related Reading | This Bitcoin Volatility Index Pattern Suggests A Short Squeeze May Be Near Such values suggest that the sentiment among the majority of the futures market traders seems to be bearish right now. In the chart, it’s also visible that the last time such negative funding rates stuck for longer than this was back in during the mini-bear market between May and July 2021. In this period, a bottom formation occurred. Because of this, the quant in the post notes that the current negative funding rates may provide the ideal conditions for a trend reversal. BTC Price At the time of writing, Bitcoin’s price floats around $37.3k, up 11% in the last seven days. Over the past month, the crypto has lost 20% in value. The below chart shows the trend in the price of BTC over the last five days. BTC’s price has mostly moved sideways in the last few days | Source: BTCUSD on TradingView A couple of days back, Bitcoin’s price touched as high as $38.6k, before coming back down to the current levels. At the moment, it’s unclear when the coin’s price may recover, but if the funding rates are anything to consider, a bottom can form in the current conditions. However, it’s worth noting that during the May-July consolidation it took more around three months of negative funding rates before the bottom formation. Featured image from Unsplash.com, charts from TradingView.com, CryptoQuant.com

Binance Bites Back At Claim It Enabled The Laundering Of $2.4 Billion In Stolen Crypto

According to a Monday report from Reuters, criminals laundered billions of dollars in cryptocurrency between 2017 and 2021 with the help of Binance, the world’s largest cryptocurrency by trading volume.