In the last few days of April, Bitcoin’s price was a bit slower, and then it started to come to life again, starting the May new moon. Since then, the Prime Minister’s cryptocurrency returns close to $98,000 and flirts with the coveted $100,000 level, beginning at the weekend.
BTC has been working on any major aggressive running for the past three months since losing $100,000 in early February. The latest chain chain data suggests that the dream of retrieving six-digit valuations may indeed be possible, and Bitcoin’s price hopes to restore its bull.
What is the negative capital rate of BTC price?
In a recent QuickTake post on crypto platforms, Chain analyst Amr Taha revealed that Binance’s Bitcoin financing rate has witnessed a significant decline in the past few days. The “Fund Rate” indicator is an indicator that measures the regular fees exchanged between traders in the derivatives (permanent futures) market.
Long traders (investors with buy positions) are paying high financing rate signals to short traders (investors with sell positions). This direction of regular payments usually indicates bullish sentiment in that particular market.
On the other hand, when the funding rate indicator has a negative value, this means that investors with short positions are paying traders who have buy positions in the derivatives market. This financing rate trend signal indicates that the market is dominated by the Bears.
Source: CryptoQuant
According to CryptoQuant, the world’s largest cryptocurrency exchange through transaction volume has dropped to -0.0008% of deep negative territory. This development reflects a major shift in current market sentiment and dynamics.
Taha attributed the recent decline in fundraising rates to active sales by Bitcoin retailers in their QuickTake post. Chain analysts then associate sales pressure with fear among market participants rather than “fundamental weakness.”
Taha notes that when the funding rate is too negative, the Bitcoin market is often vulnerable to damage by a brief squeeze, in which case short traders are forced to cover up their positions due to rising prices, exacerbating further gains. Furthermore, historically, extremely low funding rates have been associated with local price lowest points, before the bullish trend reverses.
The price of Bitcoin is clear at a glance
As of this writing, BTC is about $96,950, reflecting 2% of the past 24 hours. Assuming BTC’s recent bullish momentum and the latest chain-chain observations are worth a look, then this weekend, the Prime Minister’s cryptocurrency has a great chance to bring returns above $100,000.
The price of BTC on the daily timeframe | Source: BTCUSDT chart on TradingView
Featured images from Istock, charts for TradingView
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