Recently, Bitcoin prices have shown very low volatility. It trades within a narrow range of less than $36,000. Although the dominant cryptocurrency is still much higher than it was last year, its price is still below $36,000.

The $38,000 mark is the key point at which Bitcoin prices must rise. The rally will likely be rekindled above this level, particularly if the futures market remains open.

Many cryptocurrency traders are interested in the daily chart of Bitcoin’s price.

Bitcoin would be able to break out of an important technical formation if it reaches $38,000. This chart was shared below by TeddyCleps, a pseudonymous trader.

The problem with Bitcoin is that it trades in a narrow range and is unable to break up or correct downwards.

How would Bitcoin break above $38k?

Two factors could drive Bitcoin higher, above $38,000

The first is the miner capitulation top signal. The Chinese growing pressure on local mining has caused the Bitcoin hash rate to plummet in recent years.

The hash rate dropping hard historically marked a bottom and many miners gave up.

The second is the constant selling pressure from the futures markets.

The Bitcoin futures funding rate has been consistently negative on major exchanges in the recent weeks.

This means that many crypto derivatives traders are selling or shorting Bitcoin instead of buying it.

If the selling pressure is too intense, there’s a chance for a quick squeeze.

A mechanism known as the funding rate is used in Bitcoin futures markets. This mechanism is used by exchanges to reward the minority.

If there are more buyers on the market, then the futures funding rate will typically be above 0.01%. Buyers must reward sellers with 0.01% every eight hours. Vice versa.

The Bitcoin futures funding rate has hovered around -0.01% over the past few weeks on major exchanges.

This market incentive could help buyers to increase their chances of a short squeeze. It is especially useful when it is accompanied by a strong fundamental catalyst.

Analysts and economists still have concerns about the crypto market. The negative sentiment surrounding stablecoins as well as the mining sector continues to be prevalent within media circles.