Bitcoin bears tighten their grip on BTC now that $40K is the new resistance level

cointelegraph.com:

Bitcoin (BTC) remains below $40,000 for the third consecutive day and the most likely source of the volatility is the worsening condition of traditional markets. For instance, the S&P 500 is down 5% since April 20 WTI crude price dropped 9.5% in seven days, erasing all of the gains accrued since March 1.

Meanwhile, China has been struggling to contain its worst outbreak of Covid-19 despite strict lockdowns in Shanghai and according to Timothy Moe, chief Asia-Pacific equity strategist at Goldman Sachs, "it's no surprise, and it makes all sorts of logical sense that the market should be concerned about the Covid situation because that clearly is impacting economic activity."

As the global macroeconomic scenario deteriorated, investors took profits on riskier assets, causing the U.S. Dollar Index (DXY) to reach its highest level in 25 months at 101.8.

The cryptocurrency mining business also faced regulatory uncertainties after the United States House of Representatives member Jared Huffman and 22 other lawmakers requested the Environmental Protection Agency to assess whether crypto mining firms were potentially violating environmental statutes on April 21.

Despite Bitcoin's 4-day price 10% correction to $38,200 on April 25, most holders choose to stay hands-off, as confirmed by on-chain data from Glassnode. The proportion of the supply dormant for at least 12-months is now at all-time highs at 64%. Thus, it is worth exploring whether the recent price rejection impacted the mood of derivatives traders.

To understand whether the market has flipped bearish, traders must look at the Bitcoin futures' premium (basis). Unlike a perpetual contract, these fixed-calendar futures do not have a funding rate, so their price will differ