Bitcoin [BTC] price continues to hold above $8000; however, it has not been able to break key resistance levels. While the bearish seems to be reducing, the bulls seem to have a lot of work laid out before a significant break-out.
The price of Bitcoin [BTC] at 4: 30 hours UTC on 3rd October is $8370.
On the daily chart, the 200-Day Moving average continues to be the major resistance for the bulls.
On a shorter 4-hour timeframe, Bitcoin [BTC] has facing resistance from the 50-EMA. Price attempted to break above $8500 on 1st October 2019. However, it failed to close above the moving average.
BitMEX Funding Rate
Leading Bitcoin traders like David Puell and Tone Vays use the indicator to access market sentiments. BitMEX is the largest derivatives exchange for Bitcoin. Therefore, due to the volume, this funding rate indicator estimates the difference in long from short trading positions for the market.
If there are a greater number of buyers for the perpetual contract, the rates will go positive and vice versa. Hence, it acts as a reversal indicator, i.e., when the rates are positive for a long time, it increases the possibility of a reversal.
Tone Vays pointed out in his recent Trading Bitcoin update that the funding rates are negative currently, which favors the bulls. Nevertheless, he also mentioned that many other pointers give an over-all bearish inclination.
Bitcoin Key Resistance Levels
The recent price action in Bitcoin suggests that the bears are losing steam. Nevertheless, the bulls face several resistance levels before a trend can be confirmed.
Apart from the 200-Day Moving average, the Fibonacci clusters are also converging at around $8450. Analyst Crypto Fibonacci tweeted,
Just when it looked like it might try to break out, the confluence of the 200 day sma, 10 ema and the Fib cluster rejected it. That is still the area to break before getting too bullish IMO.
Moreover, $9000 and the bottom of the descending triangle at $9400 would also act as significant hurdles for the bulls. The closing price at the end of the week will be instrumental from a technical point of view.
What fundamental factors are affecting the price of Bitcoin? Please share your views with us.
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Nivesh from Engineering Background is a full-time Crypto Analyst at Coingape. He is an atheist who believes in love and cultural diversity. He believes that Cryptocurrency is a necessity to deter corruption. He holds small amounts of cryptocurrencies. Faith and fear are two sides of the same coin. Follow him on Twitter at @nivishoes or mail him at nivesh(at)coingape.com