Bitcoin continues to show resilience above $90,000 despite recent market volatility. A significant development has emerged as funding rates across major exchanges dropped to zero, historically a bullish indicator.
Market Analysis
Bitcoin experienced sharp price swings last week. The cryptocurrency dropped 9% in 24 hours before rebounding 11%. BTC now trades at $97,800, consolidating below the psychological $100,000 mark.
Crypto analyst Axel Adler highlighted a crucial metric. The average funding rate across top exchanges has reached zero. This indicates neutral sentiment in the futures market. Past instances of zero funding rates led to strong bull rallies.
Technical Outlook
The $90,000 level serves as strong support. Bulls actively defend this zone during dips. For upward momentum to resume, Bitcoin needs to reclaim $98,000. A break above $100,000 could trigger a new rally toward all-time highs.
Key resistance levels lie at $98,000 and $100,000. Support zones include $95,000 and $90,000. The market shows indecision as prices consolidate in this range.
Market Implications
The zero funding rate suggests speculative trading has cooled off. This often precedes major market moves. Long-term holders remain optimistic despite short-term volatility.
Investors should watch the $95,000 support level closely. A break below could trigger a deeper correction. However, strong buying interest at $90,000 provides a safety net.
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The coming week will likely determine Bitcoin’s next major move. Traders should prepare for increased volatility as the market approaches a decisive break.
Tags: Bitcoin, Crypto Markets, Trading Analysis, Funding Rates, Technical Analysis
Source: Bitcoinist