Compass Investments

Crypto vs. Dollar

📌 Bitcoin recovers bull market BTC Price Index after April drop of more than 7%.

According to Cointelegraph Markets Pro and TradingView, BTC/USD is currently around $66,000 after falling 5% in an hour candle. Bitcoin

– According to Cointelegraph Markets Pro and TradingView, BTC/USD is currently around $66,000 after falling 5% in an hour candle.

Bitcoin may have fallen 7% in April, but a retest of support levels is having a cathartic effect on an already overheated market.

According to Cointelegraph, the fall was accompanied by large liquidations, totaling $400 million for bitcoin and altcoins combined at the time of writing.

In line with this, funding rates have turned negative, according to monitoring resource CoinGlass.

“Prices have fallen and funding rates have plummeted as a result.” commented popular trader Jell in a post on X (formerly Twitter).

“BTC and ETH margin contracts are already negative. All leverage should be negated before trading even opens.”

“The speed of this movement is being driven by massive liquidations on retail exchanges like Binance, where per-pa funding rates have fallen from 77% to zero.” He wrote: “This movement has brought the spot price back to the 60-72k range.” He added that.

“While the per-pa financing rate is declining, the rest of the forwarding curve remains very high,” the company added.

Will this bring the entire curve back up?

Meanwhile, bitcoin’s Relative Strength Index (RSI) has returned to an average of 50 on a daily basis.

This is an important line during an uptrend, and its consistency has characterized bitcoin since late January.

As Ger notes, bitcoin performs best when the RSI is above 70, which corresponds to an “overbought” price signal.

As for volatility, the Bollinger Bands on the daily timeframe indicate a new pre-breakout phase for BTC/USD.

Popular analyst Matthew Hyland published a chart on X and compared it to February’s chart.

“The daily Bollinger Bands continue to narrow to levels not seen since the move from $45k began.” he commented.

At the end of 2023, Cointelegraph reported that both RSI and Bollinger Bands are calling for an accelerating bull market.

This article does not contain investment advice or recommendations. Any investment or trading moves involve risk, so readers are encouraged to do their own research and make their own decisions.

Bitcoin

Bitcoin

$64,669.72

BTC 0.99%

Ethereum

Ethereum

$3,148.19

ETH 2.52%

Binance Coin

Binance Coin

$570.22

BNB 2.39%

XRP

XRP

$0.53

XRP 4.35%

Dogecoin

Dogecoin

$0.16

DOGE 4.62%

Cardano

Cardano

$0.50

ADA 7.00%

Solana

Solana

$150.40

SOL 4.63%