Bitcoin Exceeds $29K, Raising Doubts due to Potential 'Fakeout'

Bitcoin's recent surge in price to new nine-month highs has stalled as the digital asset failed to hold above $29,000. On March 30, BTC/USD spiked to $29,170 on Bitstamp before quickly dropping back to its starting point. Some traders dismiss this move as a "deviation" at range highs, prompting skepticism about the continued strength of Bitcoin's price action.
BTC/USD 1-hour candle chart (Bitstamp). Source: TradingView
Several traders have expressed caution about Bitcoin's recent price action, with some labelling it a "fakeout." Popular trader Credible Crypto noted that the move was expected, stating on Twitter, "Nothing has changed - yea, we got a nice little pop above the highs, but this was expected."
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Fellow trader Crypto Chase echoed this sentiment, calling for $29,000 to hold to consider long positions.
BTC/USD annotated chart. Source: Credible Crypto/Twitter
Despite this caution, some traders like Crypto Tony remain optimistic that the short-term range high could still turn into new support. He stated, "Bear markets naturally have a lot more FUD and Bitcoin has certainly taken a big load of it over the last year or so. But still, we are holding nicely and going for $30,000. I am excited for the bull run to come, whether it's tomorrow or next year."
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However, trading suite DecenTrader noted that shorts currently have the upper hand, with the funding rate climbing higher while the long/short ratio remains flat. According to DecenTrader's analysis, short perps are potentially profitable, and longs are paying to keep their positions open.
BTC/USD annotated chart. Source: Crypto Tony/Twitter
Bitcoin long/short ratio, funding rate chart. Source: DecenTrader/Twitter
Bitcoin and crypto analyst Lukasz Wydra also expressed concern about the low trading volumes, last observed in June 2022, just before the drop from $30,000. Wydra cautioned that this could be a warning sign for Bitcoin's future price action.
BTC/USD annotated chart. Source: Lukasz Wydra/Twitter
While Bitcoin's recent surge to new highs has caused excitement among some traders, caution and skepticism remain prevalent in the market. With short positions currently dominating and low trading volumes observed, the continued strength of Bitcoin's price action remains uncertain.