Bitcoin (BTC) has a “chance” to regain more ground lost this month, but a retest of $40,000 could test the early bulls.
In the latest market update on February 11th, the Decentrader trading pack expressed cautious optimism about Bitcoin’s price movement.
Derivatives become complementary
After accumulating more than $45,500 amid US economic data, the BTC/USD pair has since returned to the territory it set this week.
There are chances of a decline for the Decentrader in the lower time frame, although the series measurements are giving occasional bullish signals.
The update concludes that “Bitcoin is at a relatively neutral level with clear resistance and up and down support areas.”
Bullish trading with sentiment now in ‘neutral’ instead of ‘locking’ territory and encouraging signs from derivatives markets – low funding rates and negative long/short ratio.
“Now we finally have a stable period of negative funding rates, we are seeing a decrease in [open interest rates] OI over time, and most importantly, a long to short ratio turning negative,” Decentrader continued.
The attached chart shows that under these rare conditions, the BTC/USD pair has continued to rise three times since the end of 2020.
Funding rates through Friday remain generally negative, according to data from monitoring resource Coinglass.
BTC funding price chart. Source: Coinglass
‘Nothing has changed’ in the short term
Going by expectations, the drop could bounce back to $39,000, if the bulls don’t get too shocked by breaking the $40,000 mark.
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“On the downside, there are resistance levels on both sides of the big summer break at $47,950 and $52,660,” says the update.
In the meantime, there is another “wait and see” case.
Nothing has changed,” famous Crypto trader and analyst Ed said in the latest social media update.
Expect to move up to $40,000. The bullish scenario suggests a bounce to 48000. The bearish turn starts as we break 40000.”