Bitcoin broke $58,000 on August 16 after a “massive masterclass” that hit both bulls and bears hard.
BTC Price Target Maintained Below $50,000
According to data from Cointelegraph Markets Pro and TradingView, the Bitcoin (BTC) price has recovered 4.4% from its previous low of $56,150.
The recent release of US unemployment data, coupled with the plunge in prices, has caused problems for retail investors, with both buyers and sellers liquidating.
This activity was captured by order book liquidity data from monitoring resource CoinGlass. In the 24 hours leading up to this writing, total BTC long and short liquidations were around $75 million.
Popular trader Daan Crypto Trades responded to a post on X, writing, “Today was a masterclass in Bitcoin sweeping.”
Fellow trader CrypNuevo also noted a range-bound low for BTC/USD, which kept the pair within its familiar intraday channel.
Before the sweep, trading resource Material Indicators showed another “death cross,” this time on the 4-hour timeframe. The event will help the market establish reliable long-term support, the firm said.
“The good news is that this could potentially help the market confirm a bottom for Bitcoin in some way… or it could create a new bottom,” part of X’s commentary stated.
At the same time, co-founder Keith Allen suggested that the BTC price could fall even further, which could lead to the market not only returning to the six-month lows recorded in early August, but also to the uptrend line currently at around $45,000.
As Cointelegraph reported, bulls are already fighting off two “death crosses” on the daily timeframe.
Bitcoin funding rates fall to 10-month low
Looking at the derivatives markets, on-chain analytics platform CryptoQuant found something unusual happened last year.
Related: US Government Bitcoin Sales ‘Affect Nothing’, Analysts Blame Bears
According to contributor EgyHash, the funding rate has hit its lowest negative level in almost a year.
“Binance’s Bitcoin funding rate has been negative for the third straight day, reaching levels not seen since October 2023. The average Bitcoin funding rate metric, which calculates the funding rate across all exchanges, is now also negative,” he wrote in an August 16 Quicktake blog post.
“This means that short positions now dominate the permanent market.”
Negative funding rates can mess with market sentiment, but they can also set the stage for a “squeeze” of short positions when overall sentiment calls for further declines.
This article does not contain any investment advice or recommendations. All investment and trading moves involve risk, and readers should conduct their own research when making decisions.