Bitcoin analysts fear new BTC price dip as funding rates drop post Fed
Bitcoin (BTC) created resistance at $37,500 on Friday amid an increasing consensus that a new dive was underway.
Data from Cointelegraph Markets Pro and TradingView revealed $37,500 as the ceiling which capped price action overnight into Friday.
BTC/USD had recovered from a trip to local lows of $35,500 after comments from the United States Federal Reserve, but previous highs still eluded bulls.
Now, with funding rates continuing into negative territory, it seemed that the market expected another investigation of the area closer to $30,000 support.
"Funding turned even more negative post FOMC as investors were spooked by Powell’s resolve to fight inflation," a report from crypto research firm Delph Digital summarized.
While sustained low funding rates provide fuel for a "squeeze" of unsuspecting shorters, mixed emotions prevailed Friday amid news that the U.S. government was allegedly preparing an executive order on cryptocurrency.
Upheaval on the regulatory front, which would come after a debate over the environmental impact of mining, also echoes the arduous journey of a Congressional Bill last year which saw fierce opposition over its treatment of crypto for tax purposes.
With short timeframes looking unappetizing, hopeful analysts turned to investor behavior for cues.
Popular Twitter account Material Scientist, creator of on-chain analytics suite Material Indicators, noted increased sustained buying 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
As Cointelegraph reported, data also shows that hodlers remain broadly committed to their positions,
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