Hello dear and loyal readers, today I would like to talk a bit about what has been happening with the Bitcoin price action earlier this weekend, this if we take into account that a brief dip below the $20,000 mark but right after that the price showed some strength, and the mood seemed more stable after the price returned to the $20,000 support.

The pullback below the $20,000 area implies that funding rates mimic the mood with what happened with the FTX platform, this considering that average funding rates were more negative since the FTX aftermath in November 2022.

The above indicates a strong belief that even more losses could hit Bitcoin in the following weeks, in particular I think that scenario is just speculation, as I believe the Bitcoin price since December entered a sideways and accumulation channel.

So, at this moment the price action is probably in the lower zone of the channel, so, the next thing will be to wait for a price rebound in search of the upper zone above $22,000.

In this regard, I agree with some bullish analyst assessments positing that the market is still very short here, still, and that could provide fuel for Bitcoin to test at least 21,400 in the near term.

SOURCES CONSULTED

Cointelegraph Bitcoin price spikes to ‘$26K’ in USDC terms — How high can the BTC short squeeze go?. Link

OBSERVATION:

The cover image was designed by the author: @lupafilotaxia, incorporating image: Cointelegraph