Bitcoin Falls Below $ 37,000 And Analysts Explain Possible Scenarios

Second consecutive day price Bitcoin (BTC) operates in a falling market, as shown by CoinMarketCap data. This Friday, the cryptocurrency recorded a minimum of 6.25% (18), quoted at $ 36,469.56. In Brazil, Bitcoin is worth R $ 183,680.15.

Price estimates change as the correction intensifies. Some traders remain optimistic while others await signs of further correction. At the same time, futures contracts and their data also represent important directions.

Shopping wall and essential support

The first question was raised by a Crypto Ed trader at recent analysis… On his Twitter account, the trader warns of a wall of buy orders on Binance, which are in the $ 36,500 range.

At the current BTC price, most of these orders can be completed this Friday, resulting in big bullish momentum, initially targeting the $ 41,000 area. That is, an 11.05% increase over current price. In the second target, the cryptocurrency could peak at 22.4% and reach $ 47,000.

“There is a jump (I’m not sure if it will be a jump) of about $ 36,000. I find it hard to believe that we will go upstairs this weekend, ”he said. In other words, traders are optimistic but believe that it will take days – even weeks for the price to recover.

For an experienced analyst Michael van de PoppeThe $ 36,500 area is also seen as important support, and if BTC persists, it could retest the $ 41,000 resistance.

Bitcoin futures register unusual move

In turn, the Brazilian analyst Marcel Pechman reported an unusual occurrence with BTC futures. The situation concerns the June contract, which expires on the 25th and is still open.

This phenomenon is called backwardation and it occurs when contracts are traded at a negative premium, i.e. below 100, as shown in the chart below. This happened on Thursday (17) and, according to Pehman, occurs when short sellers use excessive leverage.

At first, the situation indicates a bearish signal, which coincides with the current moment. However, there is another indicator: the funding rate for perpetual contracts. When short positions (sellers) are over-leveraged, the funding rate becomes negative.

At the moment, this rate is fluctuating between negative and positive margins, which does not indicate any signs of excessive leverage in short positions.

“If traders were truly bearish, both long-term futures and perpetual contracts would show this trend,” Pechman said.

Read also: Goldman Sachs Will Trade Bitcoin Futures From CME

Read also: FBI is the largest Bitcoin whale after Satoshi Nakamoto

Read also: Eletrobras is gaining 8%, while analysts estimate up to 60%.