The price of the most important cryptocurrency Bitcoin (BTC) has seen an incredibly tight wave of consolidation over the past 24 hours and is stuck below $11,000 and there are some metrics which could take Bitcoin to the higher levels.
Now there is still an atmosphere of uncertainty as to how the next trend will be, as Bitcoin may experience a rapid break in both directions. However, despite the large amount of bearish news for the all cryptocurrencies, Bitcoin remains steadily holding its current position.
A well-known analyst notes that Bitcoin’s current price action is in a rebound phase before surging to $ 11,000. Bitcoin and the entire cryptocurrency industry have been trading horizontally for the past several days as they haven’t gained any clear momentum.
This marks one of the tightest consolidation channels Bitcoin has faced in months, and the next breakout move after the current consolidation could happen in a massive way.
With all of this, according to the popular analyst, the continuing volatile trade wave and negative funding rates could have the power to help the bulls trigger a higher move.
Bitcoin is trading at $ 10,609. This level is the same as the range in which Bitcoin has been trading for the past few days.
After reports that the President of the United States, Donald Trump, was caught in the coronavirus currently circulating around the world, Bitcoin dropped to $ 10,400 at the beginning of the week and then moved into the consolidation phase.
Over the past 24 hours, Bitcoin has traded in the middle of $ 10,500, and that range has narrowed further in the past few hours. Generally, a break in one direction takes place after the narrowing price movements. The direction in which the breakout will take place for Bitcoin is not clear. Making statements about where Bitcoin trend will be in the coming days and weeks, the analyst stated that negative funding rates are a promising sign for higher levels.
The analyst also stated that the emergence of BitMEX’s problems, uncertainties about Trump’s health, and low investor sentiment could further lower financing rates.
“Bitcoin, which has withdrawn due to reasons such as BitMEX legal issues, Trump’s caught with Covid-19, negative financing rates, may jump towards $ 11,000 as of Monday.”