Bitcoin financing rates are still positive on Binance – confirmed the strong upward trend?

Bitcoin price has been recovered in the past few weeks, which raised questions about the sustainability of this new rise. It remains to see whether the leading cryptocurrency plays a bull trap, or it provides a legitimate claim at an absolutely high price. However, the latest data on the series indicates that the price of bitcoin may be in the beginning of a strong upward trend.
Is there a link between BTC prices and Binance financing rates?
In a quick post on the Cryptoquant platform, the BURAK KESMECI series to examine How to use financing rates on Binance to analyze the Bitcoin Prices in the short term. For context, the “financing rate” scale measures the mutual periodic scale between merchants in the derivative market (permanent future).
The positive financing rate indicates that long traders (investors who have purchase jobs) pay fees for short traders (investors who have sale jobs). This trend of periodic fees indicates the spread of upward feelings in the encryption market.
On the other hand, the low financing rate scale means that investors who have short jobs pay long traders in the derivative market. This trend of the financing rate indicates that the sellers who control the market dominated it.
According to Kesmeci, an in -depth evaluation of the bank financing rates over the past thirty days has a clear association with short -term price movement. When the financing rates turned to positive, the BTC price usually had noticeable increases in the short term.
Source: CryptoQuant
The series’s analyst is the most prominent scenario in the past month, as the BTC price offered a strong correlation with financing rates. First, Bitcoin’s financing rates on Binance entered a positive area and reached strong levels (0.0030 and above) between April 10 and April 22, where the price increased at one time from $ 79,000 to $ 93,000.
In the second period – between May 6 and May 10, the financing rates entered again in a positive area, where the price of bitcoin jumps from 95,000 dollars to $ 103,000 during this time. According to Kesmeci, financing rates on Binance – the world’s largest trading stock exchange – remain a pivotal in the BTC price track.
Kesmeci concluded that the rise in the immediate market, enhanced by positive financing rates in the futures market, indicates a strong upward trend in the short term of bitcoin price. With more bullish momentum, it will only be a matter of time before the first cryptocurrency currency recovers its current price at all and possibly formulating a new price.
Bitcoin price at a glance
From writing these lines, the BTC price is about 103,605 dollars, which reflects a 0.5 % jump over the past 24 hours.
The price of BTC on the daily timeframe | Source: BTCUSDT chart on TradingView
Distinctive image from Istock, tradingvief chart

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