Bitcoin has seen a notable upswing overnight that has allowed the cryptocurrency to rally up towards its key resistance within the upper-$9,000 region. This upswing comes as its weekly close fast approaches.
BTC is now attempting to pierce its weekly cloud resistance. Analysts are noting that it’s imperative for buyers to hold it above the cloud’s lower boundary throughout the weekly close, as an ability to do so could lead the crypto to rally up towards $11,000.
In spite of this, the cryptocurrency is seeing rising funding rates on margin trading platforms.
This can be a negative sign for the cryptocurrency’s near-term price action.
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Bitcoin Pushes Past Critical Resistance as Weekly Close Looms
In the coming few hours, Bitcoin will close its weekly candle.
The weekly close is a historically important event, as it helps give traders and investors insight into the cryptocurrency’s mid-term technical structure.
At the time of writing, Bitcoin is trading up over 4% at its current price of $9,800. This marks a notable climb from daily lows of $9,200 that were set at the bottom of yesterday’s consolidation period.
The cryptocurrency’s ongoing upswing came about after buyers posted a strong defense of the lower-$9,000 region.
It does appear that this has become a strong support level that could help bolster the cryptocurrency in the days and weeks ahead.
This upswing has also allowed Bitcoin to pierce its weekly cloud resistance.
A sustained hold above the lower boundary of this cloud formation at roughly $9,500 before today’s close could help the cryptocurrency climb significantly higher in the days and weeks ahead.
One popular crypto trader spoke about this in a recent tweet, offering a chart showing the firm movement into this resistance region.
“BTC – piercing the weekly cloud resistance again … needs to hold into the close for upper cloud target,” he noted while pointing to the below chart.
Image Courtesy of Big Chonis
If BTC rallies to the upper boundary of this cloud, it could soon set fresh year-to-date highs of nearly $11,000.
BTC’s Latest Rally Coincides with Rocketing Funding
Funding on margin trading platforms like BitMEX can offer investors with insight into the strength of price movements.
This latest rally has led funding to climb higher, meaning that traders in long positions have to pay those holding shorts – a trend that one popular trader pointed out in a recent tweet.
“Funding on OKEX is suddenly very high again,” he said while pointing to the chart seen below.
Image Courtesy of Byzantine General
Higher funding essentially means that it is expensive to be in long positions, with this premium pointing towards demand being skewed towards long positions.
As it grows more expensive to be in long positions, the chance of a trend reversal grows.
Featured image from Unplash.