Bitcoin (BTC) price created resistance at the $37,500 mark on Friday amid a growing consensus that a new dip was underway.
Funding signals lower expectations
Data from Cointelegraph Markets Pro and TradingView revealed that $37,500 was the high limiting price action overnight on Friday.
The BTC/USD pair had recovered from a trip to local lows of $35,500 following comments from the US Federal Reserve.but the previous highs were still eluding the bulls.
Now, with funding rates continuing in negative territory, it seemed the market was expecting another investigation of the area closer to the $30,000 support.
“Financing turned even more negative after the FOMC as investors spooked over Powell’s resolve to fight inflation”summarized a report by cryptocurrency research firm Delph Digital.
“Overall, it looks like the market is expecting bitcoin to make a lower bottom after recently testing the $34,000 level.”
While sustained low funding rates provide fuel for a “squeeze” of unsuspecting shorts, Mixed emotions prevailed on Friday amid news that the US government was allegedly preparing an executive order on cryptocurrencies..
The turmoil on the regulatory front, which would follow a debate on the environmental impact of mining, also echoes the arduous journey of a bill from Congress last year.which saw fierce opposition over its treatment of cryptocurrencies for tax purposes.
Since short terms seem unattractive, hopeful analysts looked to investor behavior for clues.
The popular Twitter account Material Scientist, creator of on-chain analytics suite Material Indicators, noted an increase in sustained purchases by one entity this week.
In the last week, someone has been TWAP’ing a net of +$200M with orders of size $10k – $100k, making up almost all of the total CVD on Binance.
h/t Decent@Gambling in our TG#BTC pic.twitter.com/IdGQQrFwfj
— Material Scientist (@Mtrl_Scientist) January 28, 2022
In the last week, someone has been TWAPing a net $200M+ with $10,000-$100,000 order sizes, making up almost all of the total CVD on Binance. h/t Decent@Gambling on our TG#BTC
As Cointelegraph reported, the data also shows that holders remain broadly committed to their positions, in line with the midpoint of market cycles.
Bollinger adds a “test” position on Ethereum
Altcoins continued to follow bitcoin’s pace; the past 24 hours through Friday saw limited movement either way.
Ethereum (ETH)the largest altcoin by market cap, traded 1.1% higher as signals started turning in its favor as a reversal at current levels.
For John Bollingercreator of the well-known Bollinger Bands indicator, it was time to build a position in ETH.
“Last night I bought a little bit of eth, a test position, with a close stop -very close for the cryptocurrency… I liked the pattern in the six hours and have been looking for an entry”, revealed On twitter.
“It’s not a high-confidence trade and I’m probably talking very soon, but the toe is in and I’m focused now.”
But nevertheless, others were decidedly less enthusiastic about altcoins in general, amid a forecast that bitcoin’s market cap dominance could see a broader reboundwhich would limit its capabilities.
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