One cryptocurrency watcher said that crypto funds are deploying newly issued equity/nominal capital, which seems to be pushing the cryptocurrency higher.
Bitcoin seems to be surging up and down in a narrowing price range for the past few days. Despite signs of fracture, some analysts remain cautious. Bitcoin is up more than 8% this week, as high as $39,809.
According to Matthew Dibb, Co-Founder and COO of Stack Funds, crypto funds are using newly issued capital, which appears to be raising the cryptocurrency.
Dibb told CoinDesk “new start date for capital distribution/allocation is usually first day of month” said.
The rally looks like a low leverage, spot focused move. According to data provider Glassnode, funding rates -the cost of holding a long position in perpetual futures- is near zero. A high funding rate is taken to represent excess leverage on the upside.
The daily chart indicates that the cryptocurrency has exited the bi-weekly symmetrical triangle (congestion) pattern and that more gains are possible.
Dibb, “Bitcoin technically looks much better” said. “However, we need to see a weekly close above the previous short-term high of $40,904 to regain the confidence of an ongoing uptrend.” The weekly closing takes place at 03:00 at night connecting the market to Monday.
Pankaj Balani, co-founder and CEO of Singapore-based Delta Exchange, expects recovery rallies to be short-lived.
Balani, “We expect sales to continue and the large supply to be offered at over $45,000.” said.
Hello there! My name is Oktay from Tokensboss editors. I introduce myself as a business graduate and writer. I have been doing research on cryptocurrencies and new business lines for over 2 years.