The cryptosphere continues to hold fear and anxiety, as traders and investors remain dubious around the market trends. Wherefore, the fear and greed index’s needle still bogs down to fear at a score of 30. The growing uncertainty in the business now sees fuel coming in from Bitcoin. Which has taken a fall to levels around $41k, post its euphoric run over the bygone week.
Successively, tremor sees impetus coming from an increase in long liquidations. On the other hand, the star crypto witnesses a spike in funding rates, and a fall in the estimated-leverage ratio. Investors and traders now fret over the possibility of BTC price falling below its support levels.
Are The Bears Awake To Clutch BTC Price Yet Again?
Bitcoin is now facing tremors, after its bullish rebound from the bygone week. The star crypto is now witnessing an increase in pressure coming from the sellers. According to some sources, more than $21 M worth of long liquidations have been seen in an hour of the day.
Conversely, a social post from Santiment cites that, the funding rates of BTC have risen at a brisk pace. Following its euphoric run over the weekend. BTC on the hourly time frame has been exhibiting positive funding rates and a decrease in the estimated leverage ratio. Which are hinting at extreme volatility, that said it would be advisable to avoid leveraging.
Is This The Rationale Behind The Prolonging Narrow Range?
Whilst things on the lower time frame have been portraying turbulence and volatility. Things on the higher time frame look seemingly fine, as hodlers continue to hold their bags. The justification for which comes as the illiquid supply continues to outpace the circulating supply. The illiquid supply has seen a spike by 366,060 BTC in 2021, and by 837,430 BTC in 2020.
That said, the current volatility, sideways ranging price action, and prolonging cycles. Could be a possible result of the abundant liquid and highly-liquid supply near the inflection point. As illiquid supply continues to hold the majority of the circulating supply.
Conversely, a source sheds light on the two possible scenarios , in the HODL price model. The HODL price model holds an increasing slope from the inflection point onwards. Coming back to the two possibilities, the first one is the mid-cycle dip, which reflects that of 2013. And the second one is the capitulation model value that depicts how every cycle drop was less intense.
BTC Price Analysis!
BTC price at the time of press is changing hands at $41,090, with losses of 1.9%. Whilst the market capitalization is floating at around $780,287,597,654. The volume of trades for around the clock is at $18,297,590,534. BTC price in the 24-hour frequency has been ranging from the lows of $40,615.10 to the highs of $41,849.98.
Successively, BTC price is now on the verge of finding its support at levels between $40,400 and $41,000. A slip down from where could drag the price to its support at $39k. And running out of steam from the levels could leave BTC at $35k. That said if bulls barge in we can look forward to Bitcoin rising back to $42k, from which the asset could embark to $46,000.
Concluding, whilst things on the higher time frame, still seem to be lighter for Bitcoin. Things on the short-term do seem worrying, amidst a rise in liquidations. That said, traders would need to remain distant from leverages, for skipping out on burning a hole in their pockets.