Bitcoin has begun to press higher despite weakness in legacy markets. The price of the leading cryptocurrency is currently at $10,470 despite reaching lows of $9,800 earlier this week; also, altcoins have begun to surge, suggesting that this is once again a buyer’s market.
BTC is moving above pivotal support levels during this slight rally.
While some think this is an upward fakeout, there are signs that this may be the start of a rally that takes Bitcoin back to $11,000. Here’s why.
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Why the Ongoing Crypto Rally Is the Real Deal, Analyst Explains
A cryptocurrency trader thinks Bitcoin’s ongoing rally is “the real deal” for one simple reason: the funding rates of leading BTC futures markets are predicted to go into the negative.
These are predicted readings, but it shows that there are shorters attempting to suppress the Bitcoin price as it breaks out.
When funding rates in crypto futures markets go negative, it is often expected for the cryptocurrencies in a market to actually rally, not drop.
Table of the funding rates of the top BTC derivatives exchanges at current and the predicted funding rate from ByBt, shared by crypto trader Byzantine General (@Byzgeneral on Twitter).
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Bitcoin Closing Above $10,450-10,500 Will Be Pivotal
Adding to the bullish implications of the negative funding rates, Bitcoin closing above $10,450-10,500 will have positive ramifications over the short term, analysts say.
An analyst believes that Bitcoin closing above the $10,450 resistance will trigger a recovery back above $11,000 and beyond. On the matter, he recently wrote the following, referencing the chart below:
“No candle has closed below 10.100 in 7 days, good work of the Spartans. Now bulls need to close above to 10.450 to “confirm” a up move to 11.2k.”
Chart of BTC's price action over the past few weeks with an analysis by crypto trader Inmortal Technique (@inmortalcrypto on Twitter). Chart from TradingView.com
This has been echoed by a historically accurate analyst — the one who predicted earlier this year that Bitcoin would hit the $3,000s.
He said that Bitcoin will confirm a textbook Wyckoff Accumulation recovery if it closes a daily candle above $10,500.
Chart of BTC's price action over the past few weeks with an analysis by crypto trader Il Capo of Crypto (@CryptoCapo_ on Twitter). Chart from TradingView.com
Related Reading: This European Crypto Exchange Was Just Hacked for $5 Million
Featured Image from Shutterstock Price tags: xbtusd, btcusd, btcusdt Charts from TradingView.com Here's Why the Ongoing Bitcoin Rally Is "The Real Deal"
