25 February, 2024



Why Bitcoin Prices Could Drop Below $12,000

1 year ago

22 Nov, 2023

The Bitcoin funding rate is currently at -0.14%. This is the lowest it has been since May 20, 2021. Binance’s funding rate is -0.1154% and OKX is -0.1439%.

The funding rate is the fee that longs or shorts pay per 8-hour period. A negative funding rate means that shorts are paying more than longs. This can be an indicator that a price drop is coming. With the current trend, Bitcoin prices could drop below $12,000. This would give bears the technical advantage.

Bitcoin potential to retest $12,000 if the current trend continues

The cryptocurrency market has been under pressure in the past few days as Bitcoin prices declined below $16,000. The current trend could continue if bears can maintain their technical advantage.

The next support level is $12,000. If prices break below this level, it is possible that the bear market could resume. This would put Bitcoin at risk of further declines. Investors should be cautious and monitor the situation closely.

A sustained price drop could lead to a further decline in prices. However, if bulls can regain control, prices could rebound quickly. Only time will tell how this situation plays out.

Most technical indicators are bearish. The MACD is close to crossing below the signal line. This could indicate that prices are about to enter a bearish trend.  The SMA 50 is also close to crossing below the SMA 200. This is a bearish sign as it shows that the short-term trend is losing momentum.

Source: Tradingview

The Balance of Power indicator is currently at -0.54. This is a bearish sign as it indicates that bears are in control of the market.

At press, BTC is currently trading slightly above $16,000 as bears continue to put pressure on the market. If the current trend continues, prices could drop below $12,000 as bears gain a technical advantage.

Conclusion

The current trend could continue if bears can maintain their technical advantage. Prices could retest the $12,000 support level if this happens. Investors should be cautious and monitor the situation closely. A sustained price drop could lead to further declines. However, if bulls can regain control, prices could rebound quickly.

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