Bitcoin may be down 7% in April so far, but a retest of support is already having a cathartic effect on overheated markets.“BTC & ETH margined contracts already into the negatives. All leverage must be destroyed before price discovery.”In the latest edition of its “Asia Morning Color” market updates sent to Telegram channel subscribers, trading firm QCP Capital acknowledged the significant change in the funding landscape.
“The speed of the move was due to large liquidations on retail-heavy exchanges like Binance which saw perp funding rates go from as high as 77% to flat,” it wrote, adding that “the move brings spot prices right back into the middle the 60-72k range.”“Will this be the move that brings the whole curve back down?”
At the same time, Bitcoin’s relative strength index readings on daily timeframes are back at the 50 midpoint.BTC/USD annotated chart with Bollinger Bands data. Source: Matthew Hyland/X This article does not contain investment advice or recommendations. Every investment and trading move involves risk, and readers should conduct their own research when making a decision.BTC price slips 4% to weekly low as Bitcoin bids line up toward $62KHighest monthly close ever — 5 things to know in Bitcoin this week