The price of Bitcoin was somewhat slightly before I lived again to start the new month of May on the last day of April. Premier cryptocurrency has since made nearly $ 98,000, and has been seduced to a very greedy $ 100,000 level to start the weekend.
Since the price of $ 100,000 in early February, BTC has struggled to score major positive points over the past three months. The latest on -chain data suggests that the dream of reclaiming six picture evaluations that want to resume the bulls of bitcoin can actually proceed.
What negative financing rate does it mean to the BTC price?
Chain analyst AMR TAHA from a recent Quicktake post on the Cryptoquant platform has shown that Binance’s Bitcoin funding rate has decreased significantly over the past few days. The “financing ratio” indicator is an indicator of periodic fees exchanged among merchants in the derivative (permanent futures) market.
The high funding fee indicates that long -term traders (investors with purchase positions) are paying a fee to short traders (investors with a selling position). This direction of periodic payment usually shows dominant strong feelings in certain markets.
On the other hand, when the financing rate metrics have a negative value, investors with short positions mean that they are paying to traders who are purchased in the derivative market. This trend of financing indicates that the market is dominated by Bears.
Source: CryptoQuant
According to Cryptoquant’s data, Binance’s BINANCE, the world’s largest encryption exchange through trading volume, has fallen to a negative area of about -0.0008%. This development reflects significant changes in market sentiment and epidemiology.
At the Quicktake Post, TAHA thought that the recent financing rate was reduced to aggressive sales of Bitcoin Retail Traders. Then, the thermal analyst was related to the sales pressure on the fear of market participants rather than “basic weakness”.
TAHA is often vulnerable to short pressure when the funding rate is too negative, and short traders are no longer moving as short traders have to cover their position due to price rising. Moreover, the very low funding rate has correlated with the floor of the local price before the reversal of the strong trend.
Bitcoin price at a glance
At the time of this article, the price of BTC is about $ 96,950 and has increased by 2% over the last 24 hours. Let’s assume that BTC’s recent optimism and the latest warmth observation passes. This weekend is likely to return Cryptocurrency to more than $ 100,000.
The price of BTC on the daily timeframe | Source: BTCUSDT chart on TradingView
Istock’s main image, TradingView chart
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