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Bitcoin has undergone another huge step forward in the last day. After hitting a bottom at $ 12,800 yesterday, the cryptocurrency rose to $ 13,800. The coin is currently trading for $ 13,700 as it attempts to stabilize after the daily close of the candle.
Analysts are bracing for the fireworks as Bitcoin approaches the $ 14,000 resistance level. $ 14,000 has long been a major high for Bitcoin, hitting almost perfectly highs during the 2019 rally to the upside in the summer.
Related Reading: Here’s Why Ethereum’s DeFi Market May Be Near Bottom
Bitcoin should enter “Thin Air” if the price exceeds $ 14,000
According to analysts, Bitcoin should go “into thin air” if the coin can exceed $ 14,000 on a weekly or monthly basis. A cryptocurrency analyst shared the chart below amid BTC’s latest push to the upside, noting that the cryptocurrency breaking that resistance could trigger an even greater rally:
“2018 (start of the bear market) is open every year. This is. This is the last “resistance”. Above this level, it is thin air. “
The major cryptocurrency is expected to move towards that range over the next few days as it holds the high of $ 13,000.
Other analysts who have emphasized the importance of $ 14,000 include Raoul Pal, CEO of Real Vision and a former head of hedge fund sales at Goldman Sachs.
Pal believes that once Bitcoin surpasses $ 14,000, the only macro resistance it will face will be $ 20,000. But probably, $ 14,000 is even more important than $ 20,000 due to the amount of volume around this level.
Source: BTCUSD from TradingView.com. Chart of BTC's price action since the start of 2017 with analysis by crypto trader Byzantine General (@Byzgeneral on Twitter).
Related reading: Tyler Winklevoss: A “tsunami” of capital is coming for Bitcoin
Funding rates turn negative, increasing the chances of short squeeze
The chances of Bitcoin rising from here increase.
Cryptocurrency derivatives monitoring site ByBt reports that the expected funding rates of major Bitcoin futures markets are currently entering negative territory. The funding rate is the fee that long positions pay every eight hours to keep the future price close to the spot market price.
Negative funding rates suggest that shorts are more aggressive than longs. Negative funding rates in bullish trends suggest that there are traders who expect a price drop, but this can lead to short squeeze if the price is high enough to trigger a series of stop losses.
Related reading: 3 Bitcoin chain trends show a macro bull market is producing
Featured Image from Shutterstock Price tags: xbtusd, btcusd, btcusdt Charts from TradingView.com Title
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