Bitcoin has seen some wild swings lately, with the price of the cryptocurrency hovering between the lower and upper $ 30,000 regions.
BTC has found strong support in the lower part of this range, with sellers trying unsuccessfully to break it on multiple occasions
The cryptocurrency has also seen big bouts of buying activity to counter the selling pressure that seems to be coming from big whales on Coinbase and Binance.
Once these bears lift their selling walls or run out of coins to sell, BTC could start flying higher.
One trader now notes that while the cryptocurrency appears to be positioned for further uptrend, the high funding rates remain a potential catalyst for a long squeeze.
Bitcoin saw some positive price action this morning, with the cryptocurrency rebounding after a strong overnight sell-off that sent the cryptocurrency to lows of $ 34,800.
The buying pressure here proved to be significant and helped spark a rebound that is still unfolding at this moment.
The price of BTC soared as high as $ 37,500 before facing an influx of buying pressure that slowed its rise.
BTC still looks strong, and there is a great possibility that it will continue to move higher in the near future once $ 37,000 becomes support.
An analyst warns against getting too euphoric as the high funding rates would suggest that there might be a long squeeze of Bitcoin in the future .
Bitcoin recovers after a heavy sell-off overnight
At the time of writing, Bitcoin (To Buy Bitcoin Guide ) is trading at $ 36,500. This marks a remarkable rebound from its low of under $ 35,000, which was only a few hours ago.
The medium term trends are likely to depend on Bitcoin’s further reaction to $ 37,000. This is a level of resistance for BTC that would make a tipping into support technically meaningful.
Analyst: BTC’s high funding is a risk to the uptrend
An analyst wrote in a recent tweet that Bitcoin’s near-term upside potential is currently being hurt by the high funding rates for leveraged positions.
This could suggest that being long is an incredibly crowded trade and that a Bitcoin long squeeze is imminent.
“TWAPs & Daily Openings seem really important these days. The funding is pretty high again, so I don’t think there is much room for further recovery. „