Crypto Traders Warn Big Bitcoin Price Plunge Is Around the Corner After Stagnancy

For 15 days, the Bitcoin price has been stuck in the same range, consolidating at the same support level at $6,700. Although BTC surged to as high as $7,400 recently, it failed to test a key resistance level at $7,700 and has been stagnant since. Often, when the Bitcoin price becomes stuck in a tight range for an extended period of time, it tends to see significant volatility in the near-term.

While the Bitcoin price could spike upwards in a strong, short squeeze given the negative funding rate of BTC futures, more technical factors point toward a bearish retest of lower support levels rather than an abrupt upsurge.

A funding rate is a term used on futures exchanges to describe a system that compensates short and long holders, balancing out the market. As an example, the current funding rate of Bitcoin on BitMEX hovers at 0.01%, meaning that traders who long BTC or are betting that the Bitcoin price will go up have to pay 0.01% of their position to short contract holders, as there…