Bitcoin eyes $58K as spot-driven BTC bounce makes rally ‘look sustainable’

According to a market analyst, Bitcoin (BTC) is at a very low and healthy indicator that could push it towards a key resistance level of $58,000.

In a tweet from 27. Lex Moskowski, an analyst at April, noted that forward funding rates suggest that BTC prices were completely organic this week.

Fund bulls with low and healthy stakes

Funding rates are a popular measure for assessing the health of BTC price movements. They essentially show which traders are on the right side of the bet (long or short) – a high coverage ratio on the platform means that long positions are paid out on short positions, while low coverage ratios imply the opposite.

Negative performance is what analysts look for to determine if there is or should be near-term growth potential.

Conditions are now right – the move to $55,000 was most likely not sparked by speculative activity, Moskovsky said.

Funding is very low and healthy, he wrote.

This rise in bitcoin has come out of nowhere and seems sustainable. TheBTC futures contracts have a perpetual funding rate against the BTC/USD. Source: Lex Moskovsky / Twitter

Long-term trends remain unchanged

Where BTC/USD might end up, while remaining resilient, is a topic of discussion among tech watchers on Tuesday. For Sven Henrich, founder of analysis company NorthmanTrader, the large Fibonacci levels are particularly noteworthy.

In particular, the 0.618 Fibonacci level, which is always a source of support and resistance, is now just above the $58,000 level – which is also the point where bitcoin’s February all-time high held for several weeks.

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

Bitcoin eyes $58K as spot-driven BTC bounce makes rally ‘look sustainable’

Henrich and popular Twitter account Rekt Capital, meanwhile, highlighted moving averages and the 76-day technical uptrend as key factors in determining support. They have held back BTC/USD during recent declines, with the 100-day and 21-week numbers considered the limit for bulls.

Price came back at him during the retracement but didn’t hit him in the end. You shouldn’t have, Rect Capital commented on the 76 day trend.

Both outlooks suggest that bitcoin has not crossed any red lines beyond the short-term outlook that could dictate the end of its upward trajectory.

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