Image Source: Pixabay

Following a significant lack of demand in the market and the macro event, Bitcoin’s scenario remains gloomy as the weekly candle closes. The price has lately dropped to the important support level of $18,111.

BTC price broke below the 50-day moving average line and retested it to confirm support turned resistance. It dropped 7% in 24 hours.

The $18K level stated above has significantly sustained the price in recent months. Given the growing bearish momentum, a collapse is highly likely.

It’s worth noting that the 100-day and 50-day moving averages are about to print a bearish cross. To confirm the breakdown, BTC is projected to form a pullback and retest the lower boundary of the wedge, around $21K.

The current positive divergence between the price and the RSI indicator exemplifies the idea. Given the divergence and the need to form a pullback, the price will likely undergo a short-term drop into the $21K level before continuing bearishly toward the indicated $18K support.

The Funding Rates indicate whether most futures traders are bullish or bearish on Bitcoin’s price in the future. Negative values imply pessimistic market sentiment, while positive ones indicate bullish market sentiment.
 

Funding Rates Go Negative

As the price fell below the $24K resistance level, funding rates have gone negative once more. It’s worth noting that the futures market anticipates Bitcoin breaking below this level and maybe making a new lower bottom. The subsequent selling pressure could cause the price to fall, but the market tends to reverse when funding rates are extremely high or low.

The price of Ethereum has risen in recent weeks, thanks in part to the anticipation of the network’s imminent update, “The Merge.”

Despite its benefits, Ethereum remains a speculative investment. It may be the strongest blockchain in the world. Still, if crypto and decentralized networks do not become mainstream among the general population, Ethereum will struggle to prosper in the long run.

More By This Author:

Bitcoin Has Plummeted Since Its High
The Euro Has Returned To Parity
Gold And Silver: A Lot Of Pressure Is Still Visible