Trusted Editorial content, reviewed by leading industry experts and seasoned editors. Ad Disclosure

As Bitcoin gradually recovers from its recent breakdown below the $100,000 mark, it appears to have triggered a fresh wave of bearish activity from investors. Its market dynamics are about to transition as key metrics such as the Funding Rates on the Binance platform have taken a negative turn.

Binance Traders Betting Against Bitcoin

In a dramatic bounce, Bitcoin has reclaimed the $105,000 price mark and is slowly approaching $106,000. While BTC has recovered, the impressive run has been met with negative sentiment, particularly from investors on Binance, the largest cryptocurrency exchange.

Darkfost, a verified author for CryptoQuant, reported that funding rates on the Binance exchange have declined sharply, signaling a shift in trader sentiment. Data from the expert reveals that the rates dropped to the -0.0033 level just as BTC swiftly bounced back since this past weekend.

This scenario implies that traders are progressively placing bets on further decline, indicating that bearish pressure is building on Binance. Negative funding rates may signal pessimism, but historically, they have also preceded short squeezes. As the price of Bitcoin navigates increased volatility and shifting momentum, this is a crucial period to observe.

According to the on-chain expert, negative financing rates suggest that most open positions are currently short as investors question whether the recent upward move is sustainable. Although this may initially appear to be negative, markets often move against the crowd, particularly when there is an overcrowded short side.

Furthermore, Darkfost has drawn attention to past scenarios, particularly in September last year. During the period, the market constantly shifted in the opposite direction whenever Binance’s funding rates fell into negative territory, whether in the short or medium term.

However, the sole exception was when new tariff policies were announced, momentarily altering market dynamics. If shorts persistently increase on the Binance platform, Darkfost is confident that these positions could eventually bolster the rally that started earlier this week.

Thus far, the expert has offered one key takeaway, stating that it is crucial to understand that the natural tendency of traders leans toward longing the market, which makes this current signal more remarkable.

BTC To Surge To A New All-Time High

After rallying earlier this week, BTC is currently facing significant resistance at the $106,500 threshold. However, this resistance level could give way soon, as Michael Van De Poppe, a market expert, has predicted a major rally to new all-time highs.

According to the expert, Bitcoin is stalling at levels below $106,500 until the next significant surge to new highs occurs. Van De Poppe believes that the anticipated move is only a matter of time, and BTC is likely to reach a new peak in July. Therefore, the expert suggests “buying the dip now is the best strategy.”

Featured image from Pixabay, chart from Tradingview.com

Editorial Process for bitcoinist is centered on delivering thoroughly researched, accurate, and unbiased content. We uphold strict sourcing standards, and each page undergoes diligent review by our team of top technology experts and seasoned editors. This process ensures the integrity, relevance, and value of our content for our readers.

Bitcoin’s

price chart is echoing a bullish pattern that foreshadowed the late 2024 price surge from $70,000 to $100,000 amid mounting concerns over the sustainability of the U.S. debt.

The leading cryptocurrency by market value appears on track to confirm a “golden cross” in the coming days, according to charting platform TradingView. The pattern occurs when the 50-day simple moving average (SMA) of prices crosses above the 200-day SMA to suggest that the short-term trend is outperforming the broader trend, with the potential to evolve into a major bull run.

The moving average-based golden cross has a mixed record of predicting price trends. The impending one, however, is worth noting because it’s about to occur weeks after its ominous-sounding opposite, the death cross, trapped bears on the wrong side of the market.

A similar pattern unfolded from August through September 2024, setting the stage for a convincing move above $70,000 in early November. Prices eventually set a record high above $109K in January this year.

The chart on the left shows that BTC bottomed out at around $50,000 in early August last year as the 50-day SMA moved below the 200-day SMA to confirm the death cross.

In other words, the death cross was a bear trap, much like the one in early April this year. Prices turned higher in subsequent weeks, eventually beginning a new uptrend after the appearance of the golden cross in late October 2024.

The bullish sequence is being repeated since early April, and prices could begin the next leg higher following the confirmation of the golden cross in the coming days.

Past performance does not guarantee future results, and technical patterns do not always deliver as expected. That said, macro factors seem aligned with the bullish technical setup.

Moody’s amplifies U.S. debt concerns

On Friday, credit rating agency Moody’s downgraded the U.S. sovereign credit rating from the highest ”Aaa” to ”Aa1”, citing concerns over the increasing national debt, which has now reached $36 trillion.

The bond market has been pricing fiscal concerns for some time. Last week, CoinDesk detailed how persistent elevated Treasury yields reflected expectations for continued fiscal splurge and sovereign risk premium, both bullish for bitcoin.

Read: BTC Boom Likely as Bond Yields Surge

U.S. stock markets have experienced a staggering $11 trillion wipeout since February 19, with losses accelerating on April 4 following heightened concerns over President Donald Trump’s sweeping tariff measures.

The single-day market loss amounted to $3.25 trillion—exceeding the total valuation of the global cryptocurrency market, which stood at $2.68 trillion at the time.

Among major tech players, dubbed the “Magnificent 7,” Tesla led the plunge, falling 10.42%. Nvidia and Apple also saw steep losses, dropping 7.36% and 7.29% respectively, according to TradingView data.

Nasdaq 100 Falls 6%, Slips Into Bear Market Amid Broad Sell-Off

The widespread sell-off sent the Nasdaq 100 tumbling 6% on the day, pushing the index officially into bear market territory.

The Kobeissi Letter, a financial insights platform, described April 4 as the worst day for U.S. equities since March 2020.

“U.S. stocks have now erased a massive $11 trillion since February 19,” Kobeissi said in an April 4 post on X, adding that the odds of a recession now exceed 60%.

The platform called Trump’s April 2 tariff policy announcement “historic” and warned that if such measures persist, a recession may become unavoidable.

The executive order signed by Trump imposes a 10% baseline tariff on all imported goods and introduces reciprocal tariffs aimed at leveling trade imbalances.

Trump said the move targets the disproportionate tariffs imposed on U.S. exports by other countries.

While traditional markets slump, Bitcoin has shown notable resilience. At the time of publication, BTC was trading around $83,749, down just 0.16% over the past week, according to CoinMarketCap.

Some traders have pointed to Bitcoin’s stability as a potential hedge against macroeconomic volatility.

“Bitcoin doesn’t appear to care one bit about tariff wars and markets tanking,” said technical analyst Urkel. Even longtime crypto skeptics are beginning to take notice.

“I’ve hated on Bitcoin in the past,” admitted stock market commentator Dividend Hero, “but seeing it hold steady while stocks collapse is very interesting to me.”

Trump Administration is Manipulating Stock Markets to Cut Rates: Anthony Pompliano

Last month, Bitcoin commentator Anthony Pompliano said that the Trump administration may be deliberately engineering market turmoil to pressure Federal Reserve Chair Jerome Powell into lowering interest rates.

He hypothesised that President Donald Trump and Treasury Secretary Scott Bessent are attempting to crash asset prices, forcing the Fed’s hand to reduce rates.

Pompliano, the founder and CEO of Professional Capital Management and host of The Pomp Podcast, claims that lowering interest rates is crucial to avoid the need to refinance $7 trillion in upcoming U.S. debt obligations.

“Trump and his team are intentionally crashing the market,” he wrote. “Is this a master plan or are we watching uncontrolled destruction?”

The theory comes as Powell recently refused to cut rates despite Trump’s repeated calls for lower borrowing costs.

In January, the Fed held rates steady at 4.25% to 4.5%, maintaining its cautious stance amid inflation concerns.

The post U.S. Stocks Lose $11 Trillion Since February as Recession Fears Mount Over Trump Tariffs appeared first on Cryptonews.