The price of Bitcoin has recovered quite a few weeks, raising questions about the sustainability of this fresh momentum. The flagship cryptocurrency still remains whether it is setting up a bull’s trap. However, the latest warm chain data suggests that bitcoin prices may be at the beginning of a strong rise.
Do you have a correlation between BTC Price and Binance Funds?
In the Quicktake post on the Cryptoquant platform, on-chain analyst burake Kesmeci used Binance’s funding speed to analyze the price trajectory of Bitcoin in the short term. In the context, the “financing ratio” metrics measure periodic fees exchanged among merchants in the derivative (permanent gift) market.
The positive rate of financing indicates that long -term traders (investors with purchase positions) are paying a fee to short traders (investors with a selling position). This trend of periodic fees indicates the prevalence of strong emotions in the encryption market.
Low financing Yulmetric, on the other hand, means that investors with short positions are paying to long -term traders in the derivative market. This rate of financing suggests that the market is dominated by a short market.
According to Kesmeci, in -depth assessment of Binance’s Bitcoin funding rate over the last 30 days shows a clear correlation with short -term price movement. If the financing fee changes positively, the price of the BTC usually experienced a short -term impression.
Source: CryptoQuant
Onchain analysts emphasized two scenarios, with a strong correlation with BTC’s price last month. First, Binance’s bitcoin funding rate has entered a positive territory, reaching a strong level (more than 0.0030) between April 10 and April 22, and the price has risen from $ 79,000 to $ 93,000 at the same time.
The second period -May 6th and May 10th, the rate of financing once again entered a positive territory, and the price of bitcoin increased from $ 95,000 to $ 103,000 during this period. According to KESMECI, the rate of financing for Biny’s largest trading volume remains a pivotal state in the BTC price trajectory.
KESMECI concluded that the increase in the on -site market, which was strengthened at the futures market in the futures market, suggests a short -term increase in bitcoin prices. With more optimistic propulsion, it would be a matter of time before Pryptocurrency recovered the current highest price and perhaps forging a new price.
Bitcoin price at a glance
At the time of this article, the price of BTC is about $ 103,605 and has increased 0.5% over the last 24 hours.
The price of BTC on the daily timeframe | Source: BTCUSDT chart on TradingView
Istock’s main image, TradingView chart
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