BTC Price May Pull Back as Funding Rates Hit 14-Month High

The blockchain intelligence firm, CryptoQuant, tweeted today that the Funding Rates for the crypto market leader, Bitcoin (BTC), has hit a 14-month high. The tweet added that previous occasions where Funding Rates were as high as they are currently resulted in BTC’s price pulling back.

At press time, the price of BTC has retraced slightly from its 22.47% weekly gain, and is down 0.56% over the last 24 hours, according to CoinMarketCap. As a result, BTC’s price currently stands at $20,757.88.

Trading volume for BTC has also dropped over the last 24 hours. At press time, the total trading volume for BTC is estimated to be $28,307,859,477, which is 30.31% less than yesterday’s trading volume.

Daily chart for BTC/USDT (Source: CoinMarketCap)

The retracement in BTC’s price can also be seen on BTC’s daily chart. Not only is today’s daily candle in the red, but technical indicators also suggest a decline in BTC’s price in the coming days.

Currently, BTC’s latest multi-day rally is being halted by the resistance level at $21,257. The daily RSI line has also printed a local top at around 88.95 and is now sloped negatively towards oversold territory.

The current slope of the daily RSI and the sell volume that has entered the market today could see BTC’s price drop to the next support level at $20,588. Should this level fail to hold, then the next target will be around $19,250.

This bearish thesis will be invalidated if BTC’s price breaks above the resistance level at $21,257 by the end of today’s trading session.

Disclaimer: The views and opinions, as well as all the information shared in this price prediction, are published in good faith. Readers must do their research and due diligence. Any action taken by the reader is strictly at their own risk. Coin Edition and its affiliates will not be held liable for any direct or indirect damage or loss.

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