Bitcoin is approaching $ 58,000 and BTC’s rebound fueled by spot action makes rally “look sustainable”

Bitcoin (BTC) is rising thanks to a “very low and healthy” indicator, according to a market analyst, that could propel you to a key resistance level at $ 58,000.

In a Tweet on April 27, the analyst Lex Moskovski noted that futures financing rates suggest that This week’s BTC price spike has been completely organic.

“Low and Healthy” Funding Rates Encourage Bulls

Funding rates are a popular metric for measuring the health of BTC price movements. They basically show which traders are on the right side of the bet (long or short), a high funding rate on a platform means that longs (buyers) are “paying” shorts (sellers), while low rates of financing implies the opposite.

Negative rates are what looking for analysts when determining whether some type of rise is likely to last, or one in the short term.

Currently, the conditions are right, it is likely that the climb at the $ 55,000 level it was not fueled by speculative trading action, Moskovski says.

“Funding is very low and healthy”, wrote.

“This rise in Bitcoin came from the spot market and it looks sustainable.”

Funding rate of BTC perpetual futures against the BTC / USD pair. Source: Lex Moskovski’s Twitter

Long-term trends remain intact

How high the BTC / USD pair could rise and remain sustainable is the topic of debate Tuesday among technical observers. In order to Sven Henrich, creator of the analytics firm NorthmanTrader, worth it watch the key Fibonacci levels.

Specifically, the Fibonacci level of 0.618, as always a source of support and resistance targets, now sits just above $ 58,000, also the site of a Bitcoin all-time high since February, which held for several weeks.

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BTC / USD daily candle chart with Fibonacci retracement levels (Bitfinex). Source: Sven Henrich’s Twitter

Meanwhile, Henrich and the popular Twitter account, Rekt Capital, stood out moving averages and a 76-day technical uptrend as the key to determining support. These have contained the BTC / USD pair throughout recent price declines, with the 100-day and 21-week figures seen as a line in the sand for the bulls.

“The price fell back towards her in the fall, but in the end it did not touch her. It was not necessary”, Rekt Capital commented on the 76-day trend.

Both perspectives indicate that beyond the short term, Bitcoin has not crossed any red lines, which could spell the end of its bull cycle.

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