Over the past week, bitcoin has stagnated in the mid-$11,000s after it faced firm rejection at $12K.
The selling pressure in this zone proved to be insurmountable in the last few days. Investors shifted their attention towards smaller altcoins, which have been posting huge gains throughout the past few days.
However, the consolidation for BTC could be coming to an end according to derivatives data indicating that the king coin might soon climb higher.
At the time of writing, BTC is changing hands at $11,626, which marks a significant rally above a critical support level at $11.5K.
Where BTC trends next now partly depend on whether or not buyers can close the weekly candle today above the $11,700 level.
Prominent crypto analyst TeddyCleps spoke about this level in a recent tweet, saying:
“Now you know what I meant with 11,700 being a vital level for bitcoin. It will be a hard one to conquer.”
If the BTC posts a weekly close above 11.7K, the momentum it gains from conquering this level may propel prices higher.
Bitcoin Derivatives Data Shows Imminent Price Increase
Derivative products like futures and options have become widely adopted by investors. Their effect on the spot price of bitcoin has risen radically over the last few years.
According to current derivatives data from the futures market, the bitcoin futures’ funding rate is currently “neutral” after climbing into the positive over the past week. This occurrence indicates that neither long nor short positions are overleveraged in the market.
Neutral futures funding rates are usually good signs, as they are typically seen before bitcoin prices undergo a fresh uptick.
The bullish narrative around bitcoin was corroborated by Matt Maley, the chief market strategist for Miller Tabak + Co. In an interview with Bloomberg last week, Maley noted that the recent break above $10K is inspiring and should drive Bitcoin price higher in the short term.
Ethereum Price Could Soon Break Past $400
Meanwhile, ETH shows signs of another massive breakout according to a fractal analysis by trader and analyst Byzantine General.
According to the chart he shared below, Ethereum’s recent price movement currently mirrors a similar trend that was observed during a consolidation pattern in May 2019.
The consolidation was followed by an immense pump during that period, suggesting that ETH price will do the same this time around.
The second-largest crypto on CoinMarketCap has been caught up in a week-long consolidation at its current price of $389.2.