Bitcoin price was somewhat slow in the last days of April before it exploded to life again to start the new month of May. Since then, the Cryptocurrency Premier has achieved approximately $ 98,000, kidding $ 100,000 desirable to start the weekend.
Since losing the price of $ 100,000 in early February, BTC has struggled to put any large positive round in the past three months. The latest data on the series indicates that the dream of restoring the evaluation consisting of six numbers may be truly running, as the bitcoin price is looking to resume the bull.
What are the negative financing rates that the BTC price means?
In the recent QuickTake post on the Cryptoquant platform, the Amr Taha series analyst open Benction financing rates on Binance have witnessed a significant decrease in the past few days. The “financing rate” index is a scale that measures periodic fees that are exchanged between merchants in the derivative market (permanent future).
A high or positive financing rate indicates that long traders (investors who have purchase jobs) pay fees for short traders (investors who have sale jobs). This trend for periodic payment usually indicates the presence of dominant emerging feelings in this particular market.
On the other hand, when the financing rate measurement is a negative value, it means that investors who have short jobs pay traders who have purchase jobs in the derivative market. The direction of this financing rate indicates that the market is dominated by bears.
Source: CryptoQuant
According to Cryptoquant data, the Bitcoin financing rate on Binance, which is the largest exchange of encryption in the world by trading, has decreased to a very negative area around -00008 %. This development reflects a major shift in market morale and current dynamics.
In their QuickTake’s post, Taha attributed the last decrease in the financing rate to the aggressive sale by Bitcoin retail. Then the analyst in the series linked the pressure pressure to fear among the participants in the market instead of “basic weakness”.
Taha noted that when the financing rates become very negative, the Bitcoin market is often vulnerable to short pressure, as short traders are forced to cover their positions due to high prices – which leads to an increase in the movement of the upward trend. Moreover, very low financing rates were historically associated with local prices, before the reversal of the upward trend.
Bitcoin price at a glance
From writing these lines, the BTC price is about 96,950 dollars, which reflects an increase of 2 % over the past 24 hours. Suppose the last bullish momentum in BTC and the latest observation of the series is anything that must go through, there is a strong opportunity for the excellent encryption currency that exceeds $ 100,000 this week.
The price of BTC on the daily timeframe | Source: BTCUSDT chart on TradingView
Distinctive image from Istock, tradingvief chart
Editing process For Bitcoinist, it is focused on providing accurate, accurate and non -biased content. We support strict resource standards, and each page is subject to a diligent review by our team of senior technology experts and experienced editors. This process guarantees the integrity of our content, importance and value of our readers.
