Bitcoin (BTC) price briefly exceeded $ 19,500 on December 15, reaching $ 19,570 on Binance. However, BTC fell to $ 19,050 within three hours, posting a sudden reversal of 2.5%.
Bitcoin jumped to around $ 19,600 due to the bailout and negative funding rates in the futures market. But it rejected the same level it had fallen from since November, due to pressure from whales.
Predict Bitcoin Rescue
As Cointelegraph reported on Dec. 12, technical indicators showed Bitcoin is oversold after falling below $ 17,600.
The 4-hour candlestick chart showed a bullish divergence and the TD9 Buy Indicator, indicating the sales pressure has exhausted.
Bitcoin quickly rose above $ 18,000 and continued to rise to $ 18,300. Then BTC broke key whale load resistance of $ 18,800, adding to its momentum.
Supported by rising aid, Bitcoin continued to rally, eventually rising to $ 19,570 on the major exchanges.
Negative futures financing rates lead to the growth of BTC
Futures funding rates on Binance Futures and other major platforms turned negative as Bitcoin began to return above $ 18,000.
The funding rate for Bitcoin futures becomes negative when there are more card sellers than buyers. This means that the potential for short-term pressure increase could lead to a sudden increase in consumer demand.
Although the funding rate has been negative for a short time, as the bitcoin funding rate rarely becomes negative, it was an indication of strong sales.
A merchant with a pseudonym known as “The Byzantine General” indicated that the vendors were extremely aggressive in a short time during the relief meeting. He added that a move above $ 19,300 would cut many short positions:
“The shorts were very aggressive again, and now they are underwater. Breakthrough in the 19300’s, they will come under heavy pressure.”
When Bitcoin crossed $ 19,300, it quickly reached $ 19,570, indicating a significant short squeeze.
Stock exchange see the return of Bitcoin whales
Despite the strong recovery, Bitcoin subsequently slipped past $ 19,500 when the whales made a profit.
Ki Yong Joo, CEO of CryptoQuant, announced on December 15 that he would cut his position due to an increase in whale stocks on exchanges. He said:
The profit was $ 19,250 and changed from a year long position (10 times) to a regular long position (one time). If we look at the average flow across all exchanges (MA 144), then BTC whales are depositing deposits on exchanges. I think whales need more time to make money here. ”
Bitcoin has since fallen below $ 19,100, once again consolidating below the $ 19,400 resistance range.
In the short term, the key to Bitcoin’s success is to maintain the support level above $ 18,800. As Cointelegraph reported, it would be an optimistic sign to maintain the level that could push BTC to new full-time points.