According to the data, most of the traders are expecting fresh Bitcoin price losses after ending the week hard. Analysts state that Bitcoin (BTC) consolidated below $40,000 on April 23 as market expectations favor more losses.
‘Extreme fear’ accompanies Bitcoin (BTC) drop to $39,200
BTC touched $39,200 during Friday’s Wall Street opening. Falling in line with equities, Bitcoin faced the prospect of resistance pegging itself at the $40,000 mark as traders showed a lack of confidence in a short-term recovery.
Data from on-chain analytics site Coinglass confirmed that funding rates on derivatives exchanges were unequivocally negative over the weekend, suggesting that most market participants expected the short-circuit to be the next profitable trade.
BTC funding rates chart / Source: Coinglass For analyst Filbfilb, co-founder of Decentrader, who is also known for his accurate forecasts, the ratio of longs to shorts has been a cause for concern.
Popular crypto Michaël van de Poppe, in a new Twitter post during the day
Bitcoin has returned to this critical level. If he loses that, it looks like the next $36K.
BTC has so far circled $39,800 at the time of writing, avoiding a trip to get buying liquidity below $38,000. Cold feet among traders echoed in sentiment indicators as the Crypto Fear and Greed Index returned to the ‘extreme fear’ zone on Saturday.
Crypto Fear and Greed Index / Source: Alternatif.me Looking at DXY resistance for BTC trend break
On the other hand, despite the lack of confidence, not everyone would be interested in Bitcoin in the short term. He is not interested in giving up his belief in e. Along with a chart comparing Bitcoin price performance to the strength of the US dollar, popular crypto analyst YouTuber Crypto Rover says:
“Prepare yourself for the next race. Historically speaking, this was one of the best ranges to buy BTC!”
Dollar index (DXY) and BTC explanatory chart / Source: Crypto Rover/ Twitter As reported by Cryptokoin.com, DXY is currently near two-year highs. Historically, a reversal could give Bitcoin the fuel needed to break long-term downtrends, according to analysts.
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