Why a BTC analyst is concerned after Bitcoin reached new all-time highs yesterday
Bitcoin yesterday reached new all-time highs on the top exchanges and $19,950 in some markets. The CME’s Bitcoin futures market also experienced a strong rise amid institutional buying activity.
Since then there has been a $1,000 decline to $18,000. Although Bitcoin has since recovered to over $19,000. However, some analysts are concerned by Crypto Genius that this is the beginning of a broader correction.
Why analysts are worried about Bitcoin’s price action
Tyler D. Coates, a technical analyst and author, comments that the financing rates of the leading Bitcoin futures platforms keep him on his toes.
The funding rate is the fee that long positions pay for short positions on a recurring basis to ensure that the future price remains close to the underlying market. A high funding rate indicates that there are overindebted long positions. High funding rates are often seen before corrections – such as in mid-2019, in February of this year and during earlier rallies.
Coates points out that refinancing rates on BitMEX have recently reached multi-month highs of 0.25 per cent daily:
„The daily refinancing rate on Bitmex is a major concern & it is a signal that weak hands buy what strong hands sell. The last funding peak occurred on 24.11.“.
On some exchanges this increase was even stronger. At ByBit, the predicted financing rate reached over 0.20 per cent for all eight hours. And for FTX, the hourly financing rate reached 0.008 percent.
Such a strong increase has not been seen for some time.
Coates adds: „As the Crypto Fear and Greed Index has reached levels that indicate „extreme greed“ in the market, Bitcoin could eventually fall.
„This is happening while the price is testing the 4-hour sky (Emasar Trim Zone) and it leads me to believe that this is not the right time to go $20,000. I certainly hope I’m wrong, but in the meantime I’m selling something here and placing orders to rebuy at the 4 hour beach (emasar buy zone)“.
Other analysts in the industry are also sceptical
Here is „Bitcoin Jack“, a prominent crypto-asset analyst who predicted the V-shaped inversion of the
„You probably won’t like it, but I got in and out of BTC during this dump and recovery. The 18.4-18.5 level, as described in my vids, hit my bids, but I bounced back at 19.3“.
Many investors remain convinced that the long-term upward trend is intact – despite all the shortcomings Bitcoin may experience in the near future.
Tyler Winklevoss, co-founder of Gemini and Bitcoin billionaire, believes that the coin could grow by 2,500 percent in the coming years. This would mean that BTC would pass the $500,000 milestone in the coming years.
His belief is based on the belief that BTC will replace gold as the world’s most important non-state store of value.