Bitcoin fell to $ 34,500 on the top spot exchanges last hour as selling pressures increased ahead of the week’s close. The cryptocurrency also fell to $ 35,000 on the futures exchanges, despite spot sellers leading the correction.
While some feared a deeper correction was imminent, buyers stepped in on key technical levels.
The cryptocurrency has risen to $ 38,000 at the time of this writing.
A crypto asset analyst shared the chart shown below after the rebound and noted how Bitcoin held key technical levels during the decline. The graph shows that Bitcoin’s BitMEX market has maintained the support of $ 35,000, along with a number of other moving averages that have held up quite well over the past few weeks.
Chart of the price development of BTC over the last two weeks by crypto asset analyst “Edward Morra”. Chart from TradingView.com
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High funding rates remain a cause for concern
While Bitcoin held up the decline well, analysts continue to note that the extremely high refinancing rates in the crypto asset futures markets are cause for concern.
The Funding Rate is the recurring fee that long positions pay short positions with. This system ensures that the price of the future will naturally tend to the price of the spot market over time.
Refinancing rates on the Bitcoin and Ethereum futures markets are currently positive.
On Binance, it costs users 0.1% every ten hours for long BTC, while it costs even more on other derivatives platforms.
It costs even more to renew Ethereum on the same platforms.
Even so, the recent rebound has convinced analysts that the general bull trend remains intact. One trader noted that the recent rebound looks very similar to BTC’s rebound earlier this week, when it similarly fell into the $ 34,000-35,000 region before returning higher.
Graph of the price history of BTC over the past week from crypto trader Pierre (@ Pierre_Crypt0 on Twitter). Chart from TradingView.com
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Featured Image from TradingView.com’s Unsplash Chart Price Tags: xbtusd, btcusd, btcusdt Bitcoin explodes over $ 38,000 on quick recovery