The price of the leading cryptocurrency Bitcoin (BTC) has seen an incredibly tight wave of consolidation over the past 24 hours and is stuck in a $ 50 trading range in the middle of $ 10,500.
Currently, there is still an atmosphere of uncertainty as to where the next trend will be, as Bitcoin may experience a rapid break in both directions. However, despite the large amount of bearish news for the cryptocurrency, Bitcoin remains steadily holding its current position.
A popular analyst notes that Bitcoin’s current price action is in a rebound phase before rising to $ 11,000. Bitcoin and the entire cryptocurrency market have been trading horizontally for the past few days as they haven’t gained any clear momentum.
This marks one of the tightest consolidation channels BTC has seen in months, and the next breakout move after the current consolidation could happen in a massive way.
With all of this, according to the popular analyst, the continuing volatile trade wave and negative funding rates could have the power to help the bulls trigger a higher move.
At the time of writing, Bitcoin is trading at $ 10,584. This level is the same as the range in which the leading cryptocurrency has been trading for the past few days.
Following reports that the President of the United States, Donald Trump, was caught in the deadly coronavirus currently circulating around the world, BTC dropped to $ 10,400 at the beginning of the week and then moved into the consolidation phase.
Over the past 24 hours, Bitcoin has traded between $ 10,500 and $ 10,580, and that range has narrowed further in the past few hours. Generally, a break in one direction occurs after the narrowing price movements. The direction in which the breakout will take place for Bitcoin is still unclear.
Making statements about where Bitcoin will go in the coming days and weeks, the analyst stated that negative funding rates are a positive sign.
The analyst also stated that the emergence of BitMEX’s legal problems, uncertainties regarding Trump’s health, and low investor sentiment could further lower financing rates.
“Bitcoin, which has withdrawn due to reasons such as BitMEX legal issues, Trump’s caught with Covid-19, negative financing rates, may jump towards $ 11,000 as of Monday.”