{"id":107151,"date":"2021-01-04T19:43:59","date_gmt":"2021-01-04T19:43:59","guid":{"rendered":"https:\/\/precoinnews.com\/?p=107151"},"modified":"2021-01-04T19:43:59","modified_gmt":"2021-01-04T19:43:59","slug":"bitcoin-recovers-from-overnight-plunge-but-its-in-a-dangerous-position","status":"publish","type":"post","link":"https:\/\/precoinnews.com\/bitcoin\/bitcoin-recovers-from-overnight-plunge-but-its-in-a-dangerous-position\/","title":{"rendered":"Bitcoin Recovers from Overnight Plunge, But It\u2019s in a \u201cDangerous\u201d Position"},"content":{"rendered":"<ul>\n<li>Bitcoin saw some wild overnight volatility that came about after a flurry of selling activity liquidated long positions and sent its price reeling lower<\/li>\n<li>This selloff was quite intense and caused the aggregated market to face some immense selling pressure that is showing no signs of letting up<\/li>\n<li>One analyst explained that where the market trends next will undoubtedly depend largely on the derivatives market<\/li>\n<li>He notes that funding rates are still quite high and may hamper the cryptocurrency\u2019s outlook for the time being<\/li>\n<li>As such, he is calling the crypto\u2019s current positioning \u201cdangerous\u201d \u2013 despite the strength of its rebound<\/li>\n<\/ul>\n<p>Bitcoin has seen another massive drop and recovery, which is commonplace during parabolic moves higher.<\/p>\n<p>One analyst explained that he is now watching for the entire market to see continued weakness, noting that high funding rates on margin trading platforms indicate that a wave of selling pressure could be imminent.<\/p>\n<p>That being said, from a technical standpoint Bitcoin appears to be building strength, as its recovery from the overnight drop below $30,000 is beginning to pick up steam.<\/p>\n<p>Where the market trends next should provide some serious insight into the aggregated market\u2019s mid-term outlook.<\/p>\n<h2><strong>Bitcoin Rebounds from Overnight Plunge as Bulls Vie to Control $30,000<\/strong><\/h2>\n<p>At the time of writing, Bitcoin is trading down just under 5% at its current price of $31,600. This is where it has been trading throughout the past few days but does mark a decline from its recent highs of nearly $35,000.<\/p>\n<p>Where the market trends in the near-term will undoubtedly depend on whether or not bulls can confirm that the lower-$30,000 region is a strong support zone.<\/p>\n<p>A continued bout of trading above here following the dip below this level would be a promising sign.<\/p>\n<h2><strong>Analyst: BTC Funding Rates Still Dangerously High<\/strong><strong>\u00a0<\/strong><\/h2>\n<p>One on-chain analyst explained in a recent tweet that he believes Bitcoin is still in a dangerous position following the overnight decline because funding rates are still incredibly high.<\/p>\n<p>He notes that although BTC could continue higher in the short-term, it may not be as strong as it looks.<\/p>\n<blockquote>\n<p>\u201cI&#8217;ll patiently wait for the moment the funding rate cools down. BTC could go up more, but it&#8217;s too dangerous.\u201d<\/p>\n<\/blockquote>\n<p><img decoding=\"async\" class=\"aligncenter\" src=\"https:\/\/bitcoinist.com\/wp-content\/uploads\/2021\/01\/Eq4qFOuVEAAxz7c.png\"><\/p>\n<pre>Image Courtesy of Ki Young Ju. Source: CryptoQuant.<\/pre>\n<p>The coming few days should shed some serious light on Bitcoin\u2019s near-term outlook and whether or not the cryptocurrency will be able to push any higher.<\/p>\n<pre>Featured image from Unsplash.\nCharts from TradingView.<\/pre>\n<p>Source: <a href=\"https:\/\/bitcoinist.com\/bitcoin-recovers-from-overnight-plunge-but-its-in-a-dangerous-position\/\" target=\"_blank\" rel=\"noopener\">Read Full Article<\/a><\/p>\n","protected":false},"excerpt":{"rendered":"<p>Bitcoin saw some wild overnight volatility that<\/p>\n","protected":false},"author":3,"featured_media":107150,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[47],"tags":[],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v21.7 - https:\/\/yoast.com\/wordpress\/plugins\/seo\/ -->\n<title>Bitcoin Recovers from Overnight Plunge, But It\u2019s in a \u201cDangerous\u201d Position - Pre Coin News<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/precoinnews.com\/bitcoin\/bitcoin-recovers-from-overnight-plunge-but-its-in-a-dangerous-position\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Bitcoin Recovers from Overnight Plunge, But It\u2019s in a \u201cDangerous\u201d Position - 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