Bitcoin’s price action has been creating significant fear amongst investors, with analysts and traders widely expecting it to see downside once its ongoing consolidation phase ends.
This fear is clearly seen while looking towards BTC’s funding rates, which are extremely negative at the moment as demand for short positions rockets higher.
Much of this sentiment is rooted in the news-based weakness that has come about as of late, with developments surrounding the CFTC’s pursuit of the BitMEX co-founders, coupled with macro instability in the traditional markets, leading investors to grow bearish on BTC.
That being said, the asset’s strength in the face of these developments is a positive sign that could suggest upside is imminent.
Where BTC trends next will be crucial for understanding the state of altcoins, which have been reeling lower as of late due to investors exiting en masse from “beta assets” that carry greater downside risk.
One trader is now noting that he is expecting Bitcoin to continue consolidating over a higher time frame, providing altcoins with room for growth in the days and weeks ahead.
Bitcoin Continues Lacking Momentum as Traders Move to Gain Short Exposure
At the time of writing, Bitcoin is trading up marginally at its current price of $10,620. This is around the price at which it has been trading throughout the past few days and weeks.
It is important to note that this consolidation phase is taking place