Concerns over possible U.S. regulation add to nerves as market sentiment calls for losses, not gains, to form the next moves of Bitcoin.
Bitcoin (BTC) created resistance at $37,500 on Friday amid an increasing consensus that a new dive was underway.
BTC/USD 1-hour candle chart (Bitstamp). Source: TradingView
Funding signals dip expectations
Data from Cointelegraph Markets Pro and TradingView revealed $37,500 as the ceiling that capped price action overnight into Friday.
BTC/USD had recovered from a trip to local lows of $35,500 after comments from the United States Federal Reserve, but previous highs still eluded bulls.
Now, with funding rates continuing into negative territory, it seemed that the market expected another investigation of the area closer to $30,000 support.
“Funding turned even more negative post FOMC as investors were spooked by Powell’s resolve to fight inflation,” a report from crypto research firm Delph Digital summarized.
In the last week, someone has been TWAP'ing a net of +$200M with orders of size $10k – $100k, making up almost all of the total CVD on Binance.
h/t [email protected] in our TG#BTC pic.twitter.com/IdGQQrFwfj
— Material Scientist (@Mtrl_Scientist) January 28, 2022
As Cointelegraph reported, data also shows that hodlers remain broadly committed to their positions, in line with the mid-point of market cycles.
Bollinger adds “trial” Ether position
Altcoins continued to follow in step with Bitcoin, the 24 hours to Friday seeing limited moves either way.
Ether (ETH), the largest altcoin by market capitalization, traded up 1.1% as signs began to turn in its favor as an investment at current levels.
For John Bollinger, creator of the well-known Bollinger Bands indicator, it was time to build an ETH position.
“I bought a little $ethusd, a trial position, last night, with a close stop–well close for crypto… I liked the pattern on the six hour and have been looking for an entry, he revealed on Twitter.
“Not a high confidence trade and I am probably early, but toe is in and I am focused now.”
Others were decidedly less enthusiastic about altcoins in general, however, amid a forecast that Bitcoin’s market cap dominance could be due for a broader rebound, limiting their capabilities.
Bitcoin dominance chart. Source: TradingView
