Bitcoin (BTC) is currently riding high on the back of a “very low and healthy” indicator, according to one market analyst. This price action might propel the flagship crypto to a resistance level that has formed at $58,000.
Organic growth originating from spot traders opens up critical resistance levels near $60K for BTC/USD, according to the analyst. In a tweet on April 27, Lex Moskovskimentioned that futures funding rates are indicating this week’s BTC price run has been entirely organic.
Funding Rates Power Bulls
Funding rates are a famous metric that is used for measuring the health of BTC price movements. They normally show which traders are on the right side of the bet, whether short or long. A high funding rate on any platform means that the longs are ‘paying’ shorts, while low funding rates imply the exact opposite.
The negative rates are what analysts seek whenever they want to determine if any upside is likely to endure, or is due in the near term. Today, conditions are right and the move up to $55,000 was probably not pushed by speculative trading action, according to Moskovski.
“Funding is very low and healthy. This run-up in Bitcoin came from spot price and looks sustainable.”
Long-Term Trends Still Intact
How high bitcoin could go and remain sustainable is the current topic of debate among technical observers. For the creator of analysis firm NorthmanTrader, Sven Henrich, key Fibonacci levels specifically are worth eyeing.
Mainly, the 0.618 Fibonacci level, where always a source of support and resistance aims, now hovers around $58,000. It is also the site of a BTC all-time high from February that held strong for many weeks.
In the meantime, Henrich together with popular Twitter account Rekt Capital, highlighted moving averages and a 76-day technical uptrend as key to determining support. They have contained Bitcoin in the recent price dips, with the 100-day and 21-week figures regarded as a line in the sand for the bulls.
Rekt Capital commented about the 76-day trend:
“Price pulled back towards it on the retrace but in the end didn’t actually touch it. It didn’t have to.”
Both perspectives show that beyond the short term, BTC is yet to cross any red lines that may spell the end of its current bull run.