Bitcoin funding rates show demand to short BTC as $40K becomes resistance

Bitcoin (BTC) consolidated under $40,000 on April 23 as market expectations favored further losses.


BTC/USD 1-hour candle chart (Bitstamp). Source: TradingView

“Extreme fear” accompanies Bitcoin’s descent to $39,200

Data from Cointelegraph Markets Pro and TradingView followed a bearish BTC/USD after the pair touched $39,200 on April 22’s Wall Street open.

Falling in line with stocks, Bitcoin now faced the prospect of resistance that cemented itself at the $40,000 mark, with traders showing their lack of confidence in a short-term rebound.

Data from on-chain analytics site Coinglass confirmed that funding rates across derivatives exchanges were firmly negative into the weekend, suggesting that the majority of market participants expected shorting to be a profitable next trade.

BTC funding rates chart. Source: Coinglass

For analyst Filbfilb, co-founder of trading suite Decentrader, the ratio of long to short positions was a furthe cause for concern.


“Bitcoin back on this crucial level here. Losing this -> $36K seems next,” Cointelegraph contributor Michaël van de Poppe added in a fresh Twitter update on the day.

BTC/USD circled $39,800 at the time of writing, having avoided a trip to take buy liquidity below $38,000 so far.

Cold feet among traders was, meanwhile, echoed in sentiment gauges, with the Crypto Fear & Greed Index heading back into the “extreme fear” zone on April 23.


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