BTC price preserves $16.5K, but funding rates raise risk of new Bitcoin lows
Bitcoin (BTC) staged a modest recovery on Dec. 29 as United States stock markets rebounded in step.
Data from Cointelegraph Markets Pro and TradingView showed BTC/USD recovering above $16,600 at the Wall Street open after wicking below the $16,500 for a second day.
The pair remained unappealing to traders, many of whom feared a deeper retracement may still occur around the new year.
In a list of potential “capitulation targets,” Crypto Tony doubled down on $10,000 and lower for Bitcoin, while also revealing expectations for Ether (ETH) to dip as low as $300.
“Things change quick, but if we hit these areas I begin to ladder,” part of accompanying commentary read.
Daan Crypto Trades meanwhile put the current spot price at the bottom of an area which “must hold” for BTC bulls to have a shot at upside.
“The entire market looks bad... Thing is that some altcoins look even worse,” Il Capo of Crypto continued, predicting forthcoming altcoin losses of up to 90%.
The downside thesis was supported by derivatives markets on the day, with funding rates positive while price action failed to rally.
“Layman terms, Long/Short ratio is positive first time since May, means more Longs than Shorts now, OI and Funding is positive, means people are betting on perpetual market BTC will pump, price structure looks bad and this can be easily another local top here and dump. Be careful!” popular commentator aQua summarized.
A slightly more hopeful perspective came from Blockware head analyst Joe Burnett, who argued that a painful period in Bitcoin’s history was slowly coming to an end.
“Everyone is bearish, yet Bitcoin is still trading around the same price it was in June ($17.5k),” he reasoned.
Short-term BTC price action got a boost from U.S. equities on
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