Bullish Bitcoin! Today, April 20, Bitcoin hit the $41,500 level after battling the deep bottom where the price even dropped to $38,000 within the week. This strong performance and the steady price gains surely point to a new bull run in the coming days.
After an almost month-long low, Bitcoin rebounded holding its key support level as market sentiment improved.
When Bitcoin’s April lows are considered, Bitcoin jumped almost 7% and was the last trade in the $41,000 range. At the time of writing, the BTC price is trading at $41,505 with an increase of 1.96% in the last 24 hours.
This huge bitcoin gain is due to large traders accumulating more bitcoins at a cheaper rate. Additionally, significant sell-offs in the future market, especially in long positions, pushed the price of Bitcoin above $41,500. On the other hand, this huge liquidation indicates that a large number of traders are turning to the largest cryptocurrency in the world.
From a technical standpoint, the indicators point out that Bitcoin’s current rally might just be a temporary move. According to the recent analysis, Bitcoin may be showing an impulsive pattern that will land the price of BTC all the way to $45,000. However, once this pattern is over, Bitcoin is likely to drop back below the $40,000 level.
Bitcoin’s loss is being felt in the Crypto space as concerns over rising inflation and the hawkish Federal Reserve have resulted in the world’s largest cryptocurrency by market capitalization since 2022 highs.
Also Read: Top Reasons Why Bitcoin (BTC) Won’t Drop Below $30,000!
Lower Funding Rates for Bitcoin and Ethereum
According to data from Kaiko, a Blockchain analytics firm revealed in a tweet that funding rates for Bitcoin and Ethereum have been steadily declining since late 2021.
Furthermore, data from Coinglass also shows that the funding rates of almost all cryptocurrencies are negative, indicating that traders expect the crypto market to experience a bear cycle.