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ETH$3 781.37




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Bitcoin analysts fear new BTC price dip as funding rates drop post Fed

28 Jan 2022


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. Data from Cointelegraph Markets Pro and TradingView revealed $37,500 as the ceiling which 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.  "All in all, it seems like the market is expecting Bitcoin to make a lower low after recently testing the $34K level."

While sustained low funding rates provide fuel for a "squeeze" of unsuspecting shorters, mixed emotions prevailed Friday amid news that the U.S. government was allegedly preparing an executive order on cryptocurrency. Upheaval on the regulatory front, which would come after a debate over the environmental impact of mining, also echoes the arduous journey of a Congressional Bill last year which saw fierce opposition over its treatment of crypto for tax purposes.

With short timeframes looking unappetizing, hopeful analysts turned to investor behavior for cues. Popular Twitter account Material Scientist, creator of on-chain analytics suite Material Indicators, noted increased sustained buying by one entity this week. 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" Ethereum position

Altcoins continued to follow in step with Bitcoin, the 24 hours to Friday seeing limited moves either way. Ethereum (ETH), the largest altcoin by market cap, traded 1.1% up, 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.



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Bitcoin’s continued slide down
Bitcoin’s continued slide down
A new round of crypto market mistrust
A new round of crypto market mistrust
Bitcoin holds its range, but pressure mounts
Bitcoin holds its range, but pressure mounts
Bitcoin unlikely to end correction
Bitcoin unlikely to end correction
Bitcoin looks set to take a severe dive
Bitcoin looks set to take a severe dive
Bitcoin set for a deeper correction
Bitcoin set for a deeper correction
Bitcoin falls under pressure
Bitcoin falls under pressure

Top Cryptocurrencies with Price Predictions

# Crypto Prediction Accuracy CVIX Price 24h 7d Market Cap 7d price change
1 Bitcoin (BTC) BTC Bitcoin predictions 87.6% 22 $69 942.87 -1.88% 12.96% $1 377 986 597 246 BTC 7 days price change
2 Ethereum (ETH) ETH Ethereum predictions 78.8% 32 $3 781.37 2.58% 31.56% $454 246 306 888 ETH 7 days price change
3 Tether (USDT) USDT Tether predictions 92% 1 $0.999742 -0.02% 0.02% $111 335 437 961 USDT 7 days price change
4 Binance Coin (BNB) BNB Binance Coin predictions 94% 7 $620.63 3.07% 10.12% $91 596 810 326 BNB 7 days price change
5 Solana (SOL) SOL Solana predictions 72.8% 50 $177.61 -3.80% 23.39% $79 774 925 999 SOL 7 days price change
6 USD Coin (USDC) USDC USD Coin predictions 93.6% 1 $0.999986 0.01% -0.01% $33 088 637 830 USDC 7 days price change
7 XRP (XRP) XRP XRP predictions 88.4% 10 $0.533722 -0.85% 6.97% $29 508 923 471 XRP 7 days price change
8 Dogecoin (DOGE) DOGE Dogecoin predictions 79.2% 34 $0.170465 2.91% 17.23% $24 612 964 153 DOGE 7 days price change
9 Toncoin (TON) TON Toncoin predictions 64% 71 $6.27 -5.14% -8.83% $21 800 238 494 TON 7 days price change
10 Cardano (ADA) ADA Cardano predictions 80.4% 28 $0.491662 -1.42% 14.33% $17 542 722 699 ADA 7 days price change
11 Avalanche (AVAX) AVAX Avalanche predictions 75.6% 41 $41.15 2.56% 30.33% $15 772 255 993 AVAX 7 days price change
12 SHIBA INU (SHIB) SHIB SHIBA INU predictions 74.8% 42 $0.000026 2.44% 13.10% $15 377 573 768 SHIB 7 days price change
13 Polkadot (DOT) DOT Polkadot predictions 83.2% 27 $7.60 1.52% 16.60% $10 930 670 735 DOT 7 days price change
14 Wrapped Bitcoin (WBTC) WBTC Wrapped Bitcoin predictions 83.2% 21 $70 027.99 -1.82% 13.20% $10 887 710 673 WBTC 7 days price change
15 TRON (TRX) TRX TRON predictions 90.8% 9 $0.123640 -0.09% -1.44% $10 809 671 444 TRX 7 days price change

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