BTC Price Preserves $16.5,000, But Funding Rates Increase Risk Of New Bitcoin Lows

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Bitcoin (BTC) staged a modest rally on Dec. 29 as US stock markets rebounded at the same time.

BTC/USD 1 hour candle chart (Bitstamp). Source: TradingView Meeting $10,000 BTC Price Targets

Data from Cointelegraph Markets Pro and TradingView showed BTC/USD recovering above $16,600 on Wall Street’s open after falling below $16,500 for a second day.

The pair remained unappealing to traders, many of whom feared a deeper retracement could still occur around the new year.

In a list of potential capitulation targets, Crypto Tony doubled down on $10,000 and below for Bitcoin, while also revealing expectations for Ether (ETH) to drop as low as $300.

Things change quickly, but if we reach those areas, I start to evolve, part of the accompanying commentary read.

Daan Crypto Trades meanwhile placed the current spot price at the bottom of an area that needs to hold for BTC bulls to have a chance of winning.

BTC/USD annotated chart. Source: Daan Cypto Trades/Twitter

The whole market looks bad… The fact is, some altcoins look even worse, Crypto’s Il Capo continued, predicting altcoin losses of up to 90%.

The bearish thesis was supported by derivatives markets on the day, with funding rates positive as price action failed to rally.

Simply put, the long to short ratio is positive for the first time since May, means more longs than shorts now, OI and funding is positive, means people are betting in the perpetual market that BTC will pump, the structure of price seems bad and this can easily be another top local here and dump. Be careful! popular commentator aQua summarized.

BTC/USD (Bybit) perpetual futures chart with long/short ratio. Source: aQua/Twitter

A slightly more bullish outlook came from Chief Blockware Analyst Joe Burnett, who argued that a painful period in Bitcoin history was slowly coming to an end.

Everyone is bearish, but Bitcoin is still trading around the same price as it was in June ($17.5,000), he explained.

The mining industry was decimated and many of the weak hands (BTC and ASIC) were purged. Soon we will begin another slow ascent. The strength of the US dollar “wants to rebound”

Short-term BTC price action was boosted by US equities on the day, with the S&P 500 up 1.4% and the Nasdaq Composite Index up 2.1% in the early hours. of negotiation.

Related:Bitcoin Price Would Surpass $600,000 If Hardest Asset Is Gold

The US Dollar continued a broader consolidation after two consecutive days of gains for the US Dollar Index (DXY).

Bitcoin swept low /16.5k, filled FVG and put a 3rd drive with multiple bullish H1 divergences. It’s now or never for the bulls to take that back, commented entrepreneur Mark Cullen.

Lose the 16.2k level and the yearly low will be threatened and lower + $DXY looks set to rebound! Source: Trading View

With just two days to go until the weekly, monthly, quarterly and yearly close, BTC/USD is down around 60% year-to-date, 3% for December and 14.2% in the fourth quarter, analysts confirmed. data from Coinglass.

BTC/USD monthly returns chart (screenshot). Source: Coinglass

The views, thoughts and opinions expressed herein are the sole authors and do not necessarily reflect or represent the views and opinions of Cointelegraph.

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