Menu

Categories:

Hot right now:

Follow on:

Coinsurges provides coverage of fintech, blockchain, and Bitcoin, delivering the most recent news and analyses on the future of money. Stay up-to-date with live prices, charts, and trading options for the top exchanges. Keep track of the day's top cryptocurrency gainers and losers, as well as which coins have experienced gains and losses in the past 24 hours.
Trust Coinsurges as your go-to source for all news and updates in the industry.

Menu

Categories:

Hot right now:

Follow on:

Coinsurges provides coverage of fintech, blockchain, and Bitcoin, delivering the most recent news and analyses on the future of money. Stay up-to-date with live prices, charts, and trading options for the top exchanges. Keep track of the day's top cryptocurrency gainers and losers, as well as which coins have experienced gains and losses in the past 24 hours.
Trust Coinsurges as your go-to source for all news and updates in the industry.

Market Expert Says Bitcoin Is Getting Ready To Rally As Major Indicators Cool Off

Share This Post

Bitcoin is looking to enter into the $65,000 price terrain again amidst price volatility in the past 24 hours. The latest numbers from two different metrics suggest this could become a reality soon and Bitcoin could be on track to going on a price rally. As noted by a crypto analyst on social media, the Bitcoin funding rate and basis points to a “leg up.” 

Bitcoin Is Getting Ready

According to a post on social media by Will Clemente, a popular crypto analyst, both the funding rate and 3-month annualized basis for Bitcoin are starting to cool off after briefly reaching negative readings in the past few weeks. What this means is that long-position trades for the asset are starting to dominate as investors regain confidence in its potential price action in the coming weeks.

Related Reading: Shiba Inu Whale Moves 1.7 Trillion SHIB As Price Struggles, Where Are They Headed?

A detailed look into the chart shared by Clemente shows that the funding rate, in particular, has been ranging in negative readings since the last week of April and reached its lowest on April 22. However, the current price action has pushed the funding rate into positive territory again. The BTC funding rate has rebounded from a negative rate of -0.0050% on May 4 to a current rate of 0.0090%, based on information from Coinglass. Interestingly, this increase in funding rate translated to a concurrent price increase for Bitcoin, with the crypto reaching as high as $64,000 on May 5. 

While the funding rate might seem low, it indicates the sentiment from investors is starting to become positive. When the funding rate is positive, traders who have long positions pay a funding fee to traders who have short positions. An increase in this funding rate means more traders are willing to pay more to maintain long positions, which in turn could cause an increase in the crypto’s price.

Bitcoin 1

Similarly, Clemente noted in his analysis that the 3-month annualized rate for Bitcoin is now starting to move back up. A consequence of this is that more investors will be willing to buy spot Bitcoin and simultaneously selling a futures contract that expires in three months. Interestingly, this annualized rate is currently ranging around 5% to 10% on Binance and Bybit, which is generally a bullish signal for many investors.

Bitcoin 2

The total supply of stablecoins has started rising again, which could signal that investors are getting ready to put money into Bitcoin. According to on-chain data, wallets holding between 100 and 1,000 BTC have upped their buying in the past two months.

Related Reading: Dogecoin Holders In Profit across 82%, What About Shiba Inu?

Despite the correction for Bitcoin in April, these addresses continued to acquire more Bitcoins. Analyst Willy Woo noted that an accumulation of this size has never been seen from “high net worth Bitcoin holders” over a 2-month period.

At the time of writing, Bitcoin is trading at $62,350.

Bitcoin price chart from Tradingview.com

Read Entire Article
spot_img
- Advertisement -spot_img

Related Posts

Can Dogecoin Reach $0.60? This Price Level Is Now Crucial

In his latest YouTube briefing to 292,000 subscribers, the analyst known as “More Crypto Online” (MCO) argued that Dogecoin’s recovery from early-May support keeps the memecoin’s larger

Too Late to Buy Bitcoin? Samson Mow Issues Bull Run Warning as Price Breaks $103K

The post Too Late to Buy Bitcoin Samson Mow Issues Bull Run Warning as Price Breaks $103K appeared first on Coinpedia Fintech News Bitcoin has crossed $103,000, and JAN3 CEO Samson Mow is making

Why is Crypto Going Up Today? Top Altcoins to Buy Before It’s Too Late

With virtually all crypto going up today, knowing which altcoins to buy can make the difference between staying poor and becoming the next ‘crypto dude’ To put it bluntly, Bitcoin’s price

Shiba Inu Price Jump By 15% – More 60% Rally To Come

The post Shiba Inu Price Jump By 15% – More 60% Rally To Come appeared first on Coinpedia Fintech News Shiba Inu (SHIB), the internet’s favorite dog-themed coin, is making headlines once again

Bitcoin Price To $150,000: BTC Is Mirroring Bullish Fractal From 2020

The Bitcoin price has now showed bullishness once again, beating the $100,000 resistance and continuing to rise This seems to be par for the course for the leading cryptocurrency by market cap as

SEC commissioner criticizes Ripple settlement, warns of weakened crypto oversight

US Securities and Exchange Commission (SEC) Commissioner Caroline Crenshaw has strongly opposed the agency’s recent settlement with Ripple Labs, arguing that it weakens regulatory oversight and