3 Reasons Why Bitcoin Failed to Break $19,500 Again

On December 15, the price of Bitcoin ( BTC ) surged above $19,500, reaching as high as $19,570 on Binance. However, within three hours, Bitcoin fell to $19,050, a sudden 2.5% pullback.
Bitcoin price surged to around $19,600 on momentum from its unwinding rally and negative funding rates in the futures market, but rejected levels not seen since November due to selling pressure from whale stocks.
Bitcoin is expected to usher in a round of relief rebound
According to media reports on the 12th, technical indicators show that BTC is oversold after falling below $17,600. The 4-hour candle chart shows a bullish divergence and a TD9 buy indicator, indicating that the selling pressure has been exhausted.
The price of Bitcoin quickly recovered to over $18,000 and continued to break through $18,300. BTC then broke through the key resistance level of the whale group at $18,800, further boosting its momentum. Buoyed by this relief rebound, Bitcoin continued to surge, eventually soaring to $19,570 across major exchanges.
Negative futures funding rates boost Bitcoin trading
Futures funding rates on Binance Futures and other major platforms turned negative, and Bitcoin began to recover above $18,000.
When there are more short sellers than buyers, the funding rate for Bitcoin futures contracts turns negative. This means the likelihood of a short squeeze increases, which could lead to a sudden spike in buy-side demand.
While Bitcoin’s funding rate was negative for a short period of time, as Bitcoin’s funding rate rarely turns negative, this indicates aggressive selling.
A trader who goes by the pseudonym "Byzantine General" noted that short sellers have been very aggressive during the relief rally. He added that if gold prices rise above $19,300, it will squeeze many shorts. "The shorts have become very aggressive again, and they are swamped now. Breaking through $19,300 will put a lot of pressure on them."
Once Bitcoin surpassed $19,300, it quickly climbed to $19,700, indicating a massive short squeeze.
Exchanges see return of Bitcoin whales
Despite the strong rebound, Bitcoin subsequently saw a massive sell-off above $19,500 as whales took profits.
Ki Young Ju, CEO of CryptoQuant, said on Dec. 15 that he was reducing his positions due to increased whale deposits on exchanges. He said: "Realized profit of $19,250, switched from generational long (10x) to regular long (1x). Looking at all exchange inflow averages (144 block MA), Bitcoin whales are depositing into exchanges. I think it will take more time for whales to be profitable here."
Since then, the price of Bitcoin has fallen back to below $19,100 and is once again consolidating below the resistance level of $19,400. (NetEase)