Bitcoin (BTC), which was trading at $37,500 Friday, created resistance amid growing consensus about a new dive.
BTC/USD 1-hour candle charts (Bitstamp). Source: TradingView
Funding signals dip expectations
Data from TradingView and Cointelegraph Markets Pro revealed that the ceiling that capped price action overnight into Friday was $37,500.
After comments from the United States Federal Reserve (USF Reserve), BTC/USD had retraced from a local low of $35,500, but bulls have not been able to reach previous highs.
With funding rates in negative territory, it appeared that the market was expecting another investigation into the area close to $30,000 support.
“Funding turned more negative after FOMC as investors were scared by Powell’s resolve fight inflation,” Delph Digital’s report summarized.
After recently reaching the $34K mark, it appears that the market expects Bitcoin to fall.
Chart of Bitcoin funding rates. Source: Coinglass
Although sustained low funding rates can fuel a “squeeze of unsuspecting shorts”, mixed emotions prevailed Friday after news broke that the U.S. government was planning an executive order regarding cryptocurrency.
The regulatory upheaval that would follow a debate about the environmental impact mining has also echos the long and difficult journey of a Congressional Bill last fiscal year, which was met with fierce opposition regarding its treatment of crypto for tax purposes.
Analysts who were looking for quick cues found it difficult to accept short timeframes.
Popular Twitter account Material Scientist noted an increase in sustained buying by one entity during this week’s on-chain analytics suite Material Indicators.
Someone has TWAP’ed a net of +$200M, with orders between $10k and $100k. This account makes up nearly all of Binance’s CVD. h/t [email protected] in our TG#BTC pic.twitter.com/IdGQQrFwfj
— Material Scientist (@Mtrl_Scientist January 28, 2022
Cointelegraph reported that data shows hodlers are still committed to their positions in line with market cycles’ midpoint.
Bollinger adds “trial” Ethereum position
Altcoins remained in line with Bitcoin’s trend, with only limited movements over the 24 hours to Friday.
Related: “Stop panicselling” — Bitcoin whales save BTC when exchange balances drop
Ethereum (ETH), the biggest altcoin market cap by market capital, traded 1.1% higher as signs started to favor it as an investment at current levels.
John Bollinger, the creator of the Bollinger Bands indicator was ready to create an ETH position.
“I bought a small $ethusd last night as a trial position. It had a close stop, which is good for crypto. He shared his Twitter account, “I liked the pattern of the six hour and have been searching for an entry.”
“It is not a high confidence trade, and I am likely early, but toes are in and I’m focused now.”
Some were less enthusiastic about altcoins overall, but there was a forecast that Bitcoin’s dominance in the market could be due to a wider rebound, which may limit their abilities.
Bitcoin dominance chart. Source: TradingView