Bitcoin’s price rally has come to a halt as the market has been consolidating below a significant resistance level for weeks. The daily chart shows that the bullish momentum is fading and the RSI has dropped below the 70% level, indicating that the market has entered a pullback phase. However, the 50-day moving average is on the verge of crossing the 200-day moving average to the upside around the $20K mark, which is a very bullish signal for the mid-term. In the 4-hour chart, the price has yet to break out of the tight range between the $24,000 and $22,500 levels, and the RSI indicator is showing values below the 50% threshold, suggesting a bearish breakdown of the $22,500 level is highly probable.
On-chain analysis reveals that investors are turning bullish once more on Bitcoin, as the futures market is demonstrating a positive sentiment signal. The funding rates metric has been displaying positive values over the last few weeks, indicating that investors are buying more aggressively in the futures market. However, during the recent consolidation, the funding rates metric has maintained positive values, with the price failing to rise, which could be a negative signal if things do not change. If selling pressure increases, it could lead to another significant long liquidation cascade, which would likely cause a price plunge in the short term.
