Bitcoin and the entire crypto market have been caught within a bout of sideways trading throughout the past several days and weeks, with both sides being unable to garner any clear momentum.
This has created one of the tightest consolidation channels BTC has seen in months, which could indicate that the next movement will be massive.
That being said, one trader is noting that a continued bout of choppy trading could push funding even further into the negative zone, which will help provide fuel for bulls to spark a massive move higher.
Bitcoin Consolidates Around $10,500 as Bulls and Bears Reach an Impasse
At the time of writing, Bitcoin is trading down marginally at its current price of $10,540. This is around where it has been trading throughout the past couple of days.
Ever since BTC dipped to lows of $10,400 earlier this week following news regarding President Trump contracting the deadly virus currently circulating throughout the globe, its consolidation channel has been narrowing.
Throughout the past 24 hours, Bitcoin has been trading between $10,500 and $10,580, with this range narrowing even further throughout the past few hours.
Analyst: These Events Could Be Pushing BTC’s Funding Lower
While speaking about where he expects Bitcoin to trend in the days and weeks ahead, one analyst noted that its negative funding rates are a positive sign.
He also explained that fear resulting from a combination of BitMEX’s legal issues, uncertainty about the President’s health, and low investor sentiment could help push funding rates even lower.
Image Courtesy of Byzantine General. Chart via TradingView.
If this push higher does take place as he suspects, a high quantity of open short positions will act as fuel for a move significantly higher.
Featured image from Unsplash. Charts from TradingView.
Originally from Bitcoinist.com https://ift.tt/36uUajW
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