Bitcoin has its eye on $ 58,000 as the spot-driven BTC rebound makes the rally look sustainable.


According to a market analyst, Bitcoin (BTC) is high on a “very low and healthy” indicator that could push it to an important resistance level of $ 58,000.

In a tweet on April 27, analyst Lex Moskovski noted that futures funding rates suggest that the BTC price surge this week was entirely organic.

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“Low and healthy” funding rates are fueling the cops

Funding rates are a popular measure for measuring the health of BTC price movements. They essentially show which traders are on the right side of the bet (long or short) – a high funding rate on a platform means longs short positions “pay”, while low funding rates mean the opposite.

Analysts look to negative interest rates when determining whether an uptrend is likely to continue or is due in the short term.

For now, conditions are right – the surge to $ 55,000 likely wasn’t fueled by speculative trade measures, Moskovski says.

“Funding is very low and healthy,” he wrote.

“This attempt in Bitcoin came from on site and looks sustainable.”

BTC Futures Perpetual Funding Rates compared to BTC / USD. Source: Lex Moskovski / Twitter

Long-term trends are firmly in place

How high BTC / USD could be and still remain sustainable is the subject of debate among technical observers on Tuesday. For Sven Henrich, the inventor of the analysis company NorthmanTrader, the most important Fibonacci values ​​in particular are worth a look.

In particular, the 0.618 Fibonacci level, which has always been a source of support and resistance, is now just above $ 58,000 – also the location of a Bitcoin all-time high from February that lasted for several weeks.

BTC / USD 1-day candle chart (Bitfinex) with Fibonacci retracement levels. Source: Sven Henrich / Twitter

Henrich and the popular Twitter account Rekt Capital, meanwhile, highlighted moving averages and a 76-day technical uptrend as key to determining support. These included BTC / USD during the recent declines, with the 100-day and 21-week numbers viewed as a line in the sand for bulls.

“Price withdrew on the way back, but didn’t really touch it in the end. It didn’t have to,” commented Rekt Capital on the 76-day trend.

Both perspectives suggest that Bitcoin hasn’t crossed red lines in the short term, which could mean the end of its bull run.