- Bitcoin sees trading volume down for another consecutive day.
- Focus on Chinese stock markets as BTC funding rates on China derivatives exchanges gradually rose from the negative region.
- Meanwhile, BTC stabilized beyond the 20-day MA 48 hours following a 20% crash.
- Bitcoin (BTC) – $50,509 (+2.3%)
- Ether (ETH) – $4,324 (+3.1%)
Bitcoin (BTC) inched up during Monday sessions. That was two days after the leading cryptocurrency plummeted by 20%, nearing $41,000 at one point. T leading digital coin by market capitalization traded well beyond the $50,000 mark at this writing.
Trading volume remained lower than the past day in most centralized exchanges. Also, the altcoin market noted upswings. Ether hovered at $4,324 following a 3% surge.
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According to QCP Capitals, a cryptocurrency trading company based in Singapore, BTC’s average funding rate in perpetual futures listed on top trading exchanges among traders in China, including ByBit, OKEx, and Huobi, recovered from the negative region slower than funding rate on different top crypto exchanges like Deribit. Keep in mind that crypto exchanges evaluate funding rates every 8hrs.
Yesterday, QCP Capital posted on Telegram that the case above shows China’s persistent selling. That was when citing China’s ‘bad news,’ including ride-hailing Didi’s statement to delist from NYSE (New York Stock Exchange). Other tech stocks in China tumbled after the news. That came as investors worried about other tech companies following Didi’s decision.
Nevertheless, China real estate firm Evergrande Group saw its bonds and stocks plunging to record lows. That resulted from the government increasing its involvement in the firm’s management. Meanwhile, the indebted real estate giant has been vital in the financial and crypto markets. That is according to previous CoinDesk reports.
For now, Bitcoin stabilizes beyond its 200-day MA, currently near $46,000 after the crypto suffered a 20% fall over the past weekend. The leading crypto remained almost flat over the previous 24 hours and hovered at $49,000 as the New York session ended. For now, Bitcoin lost nearly 15% over the last seven days.
The daily chart shows the most oversold RSI since July. July had such conditions leading to a massive price recovery. Meanwhile, oversold conditions might stay for some days as sellers slowly exit positions.
BTC seems ready for a near-term bounce, though the resistance zone at $55,000 – $60,000 will limit upswings. Remember, weekly strength indicators switched negative. That happened last in April, and a brief bear market followed.