Bitcoin Slips Back Under $18,000 as Selling Pressure Picks Up Again

Nick Chong

Last Updated: June 11, 2024 2:11 pm

2 mins read

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Bitcoin is slipping lower despite the rally earlier today. BTC is down another 2% since the trading session began an hour ago, pushing under $18,000 yet again.

The price of the leading cryptocurrency currently is $17,925, with Ethereum and altcoins also dropping rapidly.

According to ByBt, the funding rates of leading Bitcoin futures markets are currently around baseline of 0.01% per eight hours. On OKEx, they have even dipped into the negative, meaning that short positions are paying long positions on a regular basis.

This may be a sign that the market has reset after leverage took the market rapidly higher and rapidly lower at the end of November. The funding rates resetting could be a sign that Bitcoin is primed to move back toward the upside.

Comes in Spite of Positive Adoption Trends

This drop comes in spite of institutional demand for Bitcoin. Matt Kaye, a managing partner at Blockhead Capital, recently asked his followers why Bitcoin isn’t rallying as MicroStrategy is primed to buy $550 million worth of BTC:

“The one thing I can not wrap my head around is the lack of front running on Saylor’s $550MM raise. You’d expect rational market participant to want long before that fiat is allocated. The deal is set to close as soon as tomorrow. What am I missing?”

The one thing I can not wrap my head around is the lack of front running on Saylor's $550MM raise.

You'd expect rational market participant to want long before that fiat is allocated.

The deal is set to close as soon as tomorrow.

What am I missing?https://t.co/pDlKwRmBgh

— Horus 👁️ (@h0xrus) December 11, 2020

Losses Ahead for Bitcoin Holders?

Some think that Bitcoin is primed to move lower in spite of the institutional inflows that are taking place. One crypto-asset analyst commented that the fact BTC printed stong “SFP” candles at the highs of $19,950 may indicate that there are further losses on the way:

“I’ve been bearish on #Bitcoin near the highs based purely on TA. Literally HTF SFPs on Eth and Btc at the top. My TA says this can come back way lower, $11k-13k. With these large players buying in at these levels maybe this time it’s different? What do you all think?”

Another reason why investors are concerned is on-chain trends. Willy Woo, a leading on-chain analyst, recently commented that he thinks there is a good likelihood there is consolidation or further losses in the weeks ahead:

“Bitcoin on-chain structure saying to bulls “thou shall not pass”, not without a reset. A reset means many weeks of sideways or a decent bearish dip. Will we get a dip? There’s no impulse of coin movements that’s strongly bearish just yet. Waiting game.”

Many are confident that BTC will retain its macro ascent, though, as the U.S. dollar continues to drop and as investors increasingly prefer BTC.