Will Bitcoin rise after Ethereum merge or will we see new lows?

While all eyes will be on the Ethereum (ETH) “merge” today, it will be interesting to see how the rest of the market reacts to this event today. The merge, if all goes well, will be less than an hour away from us. Talk about it in our Discord surroundings!

Bitcoin (BTC) plummeted on Tuesday after the US consumer price index, but has since held steady just above USD 20,000. Still, bitcoin briefly dipped to $19,800 from $20,200 last night, but then recovered immediately to $20,300. Last night, bitcoin fell again to $20,000, but this time it did not dip below.

At the time of writing, the bitcoin price is $20,030 on Binance and $20,110 on Bitvavo. The BTC price is therefore down 1.2% today. The trading volume fell by 24% in the past 24 hours. The total market cap stands at $385.5 billion and the dominance at $38.9%. The Fear & Greed Index comes out at 28:

Bitcoin news from yesterday

Will bitcoin stay above $20,000 or will we see new lows?

Analyst Il Crypto Capo has been a lot more in recent months bearish than other analysts, but turned out to be often right after all. For now, he remains very bearish on bitcoin. Although he has a big bounce expected back to $22,000 – $23,000, he expects a heavy rejection in that range.

Bitcoin could then fall sharply, possibly to new ones lows all the way to $16,000. Keep in mind that not everyone is as bearish as this analyst and one doesn’t necessarily have to aim for the absolute bottom. It may be wise to first wait and see how the price reacts to the Ethereum merge.

Bitcoin funding rate negative

The funding rate for bitcoin indicates how much an investor has to pay by lung or short to go. Positive funding rates indicate that long investors are dominant and willing to fund short traders. A negative funding rate indicates that short traders are dominant. A positive funding rate implies that investors are optimistic about the price development of bitcoin.

On the graph above, we see that Bitcoin again shows a negative funding rate for the first time in a week on September 14. This indicates that short-term investor confidence in bitcoin price developments is low.

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