The price of bitcoin was relatively slow in the last days of April before exploding again to life to start the new May. The leading cryptocurrency has since made a return near $ 98,000, interacting with a high coveted $ 100,000 level to kick the weekend.
Since the loss of $ 100,000 price score in early February, the BTC has been struggling to put any basic positive running over the past three months. The latest on-chain data suggests that the dream of recovering a six-figure appreciation could be truly, with the price of Bitcoin looking to continue its bull run.
What negative funding rates for BTC prices?
In a recent QuickTake post on the cryptoquant platform, on-chain analyst AMR Taha revealed That Bitcoin funding rates in Binance have witnessed a significant decline in recent days. The “funding rate” indicator is a scale that measures the phase -time fee exchanged between traders in the derivatives market (Perpetual Futures).
A high or positive funding rate signal that long entrepreneurs (investors with purchase positions) pay a fee to short businessmen (investors with sales positions). This direction of bow -time payment usually indicates a dominant bullish emotion in the particular market.
On the flip side, when the funding rate of funding is a negative value, it indicates that investors with short positions pay traders with purchase positions in the derivatives market. The funding rate of this funding has signed that the market is dominated by bears.
Source: CryptoQuant
According to data from the cryptoquant, the rate of Bitcoin funding to Binance, the largest crypto exchange worldwide through trading volume, has fallen into a deep negative territory around -0.0008%. This development reflects a significant transition to current sentiment and market dynamics.
In their QuickTake post, Taha has linked a recent refusal to fund the rate of funding to the aggressive sale of Bitcoin retail businessmen. The On-chain analyst then fixed the sale of pressure to be afraid among the market participants rather than the “main weakness.”
Taha noted that when funding rates become negative, the Bitcoin market is often susceptible to a short squeeze, where short entrepreneurs are forced to cover their positions due to rising prices – fuel is an additional reversal move. Moreover, very low funding rates have become historically associated with local under price, which has previously been bullish backgrounds.
Price of bitcoin at a glance
As of this writing, the BTC price stands around $ 96,950, reflecting a 2% increase in the past 24 hours. Assuming that the BTC's recent bullish momentum and the latest on-chain observations are anything to go through, there is a strong chance of the major cryptocurrency that returns to above $ 100,000 this weekend.
The price of BTC on the daily timeframe | Source: BTCUSDT chart on TradingView
Featured image from Ishock, chart from tradingview
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