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Bitcoin’s price has been rather stable recently. Its price is fluctuating between $36,000 and $37,000. While the most popular cryptocurrency is substantially higher than it was at this time last year, it is down more than 40% from its April high.
The price of bitcoin continues to fluctuate in a narrow range, failing to establish a clear direction.
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The $38,000 mark is a critical one for the Bitcoin price to surpass. Above it, the surge would most certainly resume, especially if the futures market is not overly crowded.
Many cryptocurrency traders are keeping an eye on the Bitcoin price on a daily basis.
If the Bitcoin price rises above $38,000, it will break out of a key technical pattern, as seen in the chart below by anonymous trader TeddyCleps.

The Bitcoin price chart on a daily basis.
TeddyCleps

However, Bitcoin’s difficulty is that it trades in a narrow range all of the time, failing to either break upwards or correct downwards.
What Are the Chances of Bitcoin Surpassing $38,000?
Two factors have the potential to drive Bitcoin above $38,000.
The miner capitulation bottom signal is the first. Due to China’s increasing pressure on the local mining industry, the Bitcoin hash rate has recently dropped.
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When the hash rate decreased sharply in the past, it signaled a bottom because many miners gave up.
The second factor is the futures market’s continuous selling pressure.
In recent weeks, the Bitcoin futures funding rate has been consistently negative across key exchanges.
This means that instead of buying Bitcoin, many traders in the crypto derivatives market are shorting or selling it.
When selling pressure becomes too great, the danger of a short squeeze arises.
A mechanism known as the financing rate exists in the Bitcoin futures market. This approach is used by exchanges to reward the market’s minority.
If there are more buyers in the market, for example, the futures financing rate will normally be higher than 0.01 percent. This means that every eight hours, buyers must reward sellers with 0.01 percent of their position, and vice versa.
The financing rate for Bitcoin futures on various exchanges has been hovering around -0.01% in recent weeks.
Because this type of market encourages buyers, it raises the chances of a short squeeze, especially if accompanied by a significant fundamental event.
Nonetheless, economists and analysts are concerned about the crypto industry. In particular, there is still a lot of hostility in the media about stablecoins and the mining industry./nRead More

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