Bitcoin (BTC) created resistance at $37,500 on Friday amid a growing consensus that a fresh drop is in progress.
Hourly BTC/USD light chart (Bit Mark). Source: Trading View
Funding indicates lower expectations
Data from Cointelegraph Markets Pro and TradingView showed that $37,500 was the maximum limiting price action on Friday night.
The BTC/USD pair recovered from a trip to the local low of $35,500 following the US Federal Reserve’s comments, but the previous highs still avoided the bulls.
Now, with funding rates still in negative territory, the market appears to be waiting for a fresh revision of the area closer to the $30K support.
“Finance became more negative after the FOMC, when investors were intimidated by Powell’s decision to fight inflation,” sums up a report from crypto-analytics firm Delph Digital.
“Overall, the market appears to be anticipating a drop in bitcoin to its lowest level after testing the $34,000 level recently.”
Bitcoin financing price chart. Source: Coinglass
While persistently low funding rates are feeding “pressure” on the reassuring short sale, mixed sentiment prevailed amid Friday’s news that the US government was preparing an order for cryptocurrency.
The upheaval on the regulatory front that will come after the debate over the environmental impact of mining also reflects the difficult trajectory of a bill in Congress last year that sparked fierce opposition to treating cryptocurrencies for tax purposes.
With the short time frame looking unattractive, ambitious analysts have turned to investor behavior for signs.
The popular Twitter account of Material Scientist, who created the online analytics package Material Indicators, noticed an increase in ongoing purchases of one device this week.
As reported by Cointelegraph, the data also shows that stockholders remain broadly committed to their positions in line with mid-market cycles.
Bollinger adds a ‘beta’ ether position
Altcoins kept pace with bitcoin, 24 hours before Friday, so movements were limited anyway.
Related: ‘Stop Panic Selling’ – Bitcoin Whales Pack BTC Parts as Coin Balances Drop
Ether (ETH), the largest altcoin by market cap, is up 1.1% as signals begin to turn in its favour as an investment at today’s levels.
For John Bollinger, creator of the popular Bollinger Bands indicator, it’s time to open a position on ETH.
“I bought a small USD coin, after testing last night, with a tight stop – well, close to the cryptocurrency… I liked the six-hour pattern and was looking for an entry,” he tweeted.
“The deal isn’t very certain and I might be early, but my toe and I’m focused now.”
Others have clearly been less enthusiastic about altcoins in general, but amid expectations that Bitcoin’s dominance of the capital market could be linked to a broader decline, which limits their options.