Bitcoin (BTC) continues its consolidation above $23,000. The largest cryptocurrency on the market has been stuck in a range following what appeared to be an uptrend poised to break new yearly highs and climb to the $30,000 level.
As of press time, BTC has failed in another attempt to break above $23,900 and consolidate above $24,000 to target the ultimate resistance wall for the bears at $25,000.
A confluence of negative funding rates and whale-selling pressure has pushed the BTC’s price lower. Will the bulls have another chance to break through the upper resistance walls and continue the uptrend?
Bitcoin Bulls Have Thrown The Towel?
According to a Twitter post by on-chain data analytics firm LookIntoBitcoin, BTC’s funding rates have turned negative, indicating that most traders on the cryptocurrency’s most significant exchanges have taken positions “betting on a price decline.”
As the data shows, traders are “betting” on the move to the downside; given the recent crypto crackdown by the Securities and Exchange Commission (SEC) and the potential bankruptcy of crypto-friendly bank Silvergate, the Bitcoin price action may be targeting lower levels. Still, market makers can chase that liquidity and fuel a rally to the upside.
Eight Global CEO and full-time trader Michael Van de Poppe addressed the market’s current circumstances, stating that if BTC fails to hold the $23,200 support level, the largest cryptocurrency on the market will likely test $22,000 before moving higher. Van de Poppe explained:
Silvergate potentially going bankrupt, pushing prices down a bit more. On the other hand; people are piling into positions since the news and no real movement on Bitcoin. This might be an assumption people are heavily skewed to the short side here. Time for a squeeze.
Furthermore, as seen in the chart above, selling pressure from whales has increased since May 2022, despite the market’s recovery. Crypto addresses with more than 1,000 BTC had continuously sold their BTC, which intensified after the FTX debacle and current actions from the SEC.
After more than fourteen days, Bitcoin continues its sideways movement with high expectations from investors about further profits. BTC has risen 60% since December 2022, and it has claimed its 200-moving average (MA) as solid support to regain new annual highs.
Bitcoin is trading well above $23,000, showing strong support. At the time of writing, Bitcoin is trading at $23,400; it has declined by -0.6% over the past 24 hours.
The sideways price action has affected higher timeframes, with the seven-day time frame showing a 2.9% decline. Over the past fourteen days, BTC has experienced a significant price decline of -3.6%.
Featured Image from Unsplash, chart from TradingView.com.
