Bitcoin tops above $29K as ‘fakeout’ casts doubt on BTC price strength
Bitcoin (BTC) set new nine-month highs overnight on March 30 as traders remained cautious.
“Divergence” takes BTC price closer to $30.0
Data from Cointelegraph Markets Pro and TradingView showed BTC/USD rising to $29,170 on Bitstamp.
A rejection came in almost immediately, sending the pair back to square one and prompting already suspicious market participants to call it a “fakeout”.
“Nothing has changed – yes, we got a nice little pop over the tops, but this was expected,” popular trader Credible Crypto wrote as part of a Twitter reaction, calling the move an “anomaly”.
Fellow trader Crypto Chase also used the “divergence” tag, calling for $29,000 to hold to consider long positions.
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A slightly more optimistic Crypto Tony nonetheless the hope that the high short-term area can still be turned to new support.
“Bear markets naturally have a lot more FUD, and Bitcoin has certainly taken a big toll on that over the last year or so. But still we’re holding up well and going for $30,000. I’m excited for the bull run to come, either it’s tomorrow or next year,” he added.
Bitcoin price analyst: volume echo June 2022 fall signal
Analyzing the situation on derivatives exchanges, trading suite Decentrader, meanwhile, noted that shorts currently had the upper hand.
Related: Bitcoin Price Will Reach This Key Level Before $30K, Survey Says
“The funding rate continues to climb higher while the long/short ratio remains flat,” it in summary in fresh analysis on the day.
“With price declines and positive funding, short perps are potentially profitable and are being paid by longs to keep their positions open.”
In a further potential warning sign, Bitcoin and cryptoanalyst Lukasz Wydra noted that current trading volume was at its lowest in 2023.
“The last time something like this was observed was in June 2022. Paradoxically, just before the drop from 30k,” he revealed along with map data.
The views, thoughts and opinions expressed herein are those of the authors alone and do not necessarily reflect or represent the views and opinions of Cointelegraph.
