Bitcoin () consolidated under $40,000 on April 23 as market expectations favored further losses.
«Extreme fear» accompanies Bitcoin’s descent to $39,200
Data fromand followed a bearish BTC/USD after the pair touched $39,200 on Friday’s Wall Street open.
Falling in line with stocks, Bitcoin now faced the prospect of resistance cementing itself at the $40,000 mark, with traders showing their lack of confidence in a short-term rebound.
Data from on-chain analytics siteconfirmed 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.
For analyst Filbfilb, co-founder of trading suite Decentrader, the ratio of long to short positions was a furthe cause for concern.
Price at $47k:
— LS ratio was 1:1
Price at $39.5k:
— LS ratio = 3.5
— filbfilb (@filbfilb)
«Bitcoin back on this crucial level here. Losing this -> $36K seems next,» Cointelegraph contributor Michaël van de Poppein a fresh Twitter update on the day.
BTC/USD circled $39,800 at the time of writing, having avoided a trip tobelow $38,000 so far.
Cold feet among traders was meanwhile echoed in sentiment gauges, with theheading back into the «extreme fear» zone on Saturday.
DXY resistance sought for BTC trend break
Despite the lack of confidence, not everyone was interested in abandoning their faith in Bitcoin beyond the short term.
«Prepare yourself for the next runup. Historically speaking, this has been one of the best ranges for buying Bitcoin!» popular YouTuber Crypto Roveralongside a chart comparing Bitcoin price performance to the strength of the U.S. dollar.
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