The price of Bitcoin was slightly slow during the last days of April before they blasted to life again to start the new month in May. Premier Cryptocurrency has since made a return close to $ 98,000, flirt with the highly sought -after $ 100,000 level to start the weekend.
Since losing the price of $ 100,000 in early February, BTC has been struggling to set up any major positive driving over the past three months. The latest information on the chain suggests that the dream of regaining a six-digit valuation can really be on, with the Bitcoin Prize that wants to resume its bull driving.
What negative degrees of financing means for BTC price?
In a recent Quicktake post on the Cryptoquant platform, analyst on the chain Amr Taha revealed that Bitcoin financing levels on Binance have witnessed a significant decline in recent days. The “financing rate” indicator is a metric that measures the periodic fee exchanged between traders on derivatives (eternal futures).
A high or positive degree of financing signals that the long retailers (investors with buying positions) pay a fee to short traders (investors with sales positions). This direction for periodic payment usually indicates a dominant haussey feeling in the specific market.
On the back, when the financing rate has a negative value, this means that investors with short positions pay traders with purchase positions in the derivative market. This financing frequency trend signals that the market is dominated by the bears.
Source: CryptoQuant
According to Cryptoquant data, the Bitcoin financing rate at Binance, the world’s largest crypto exchange by trading, has fallen into a deeply negative territory around -0,0008%. This development reflects a significant change of Current Marketing Eentiment and Dynamics.
In their Quicktake post, Taha attributed to the recent decline in the degree of financing to the aggressive sale of Bitcoin details. The analyst on the chain then correlated sales pressure to fear among the market players rather than “basic weakness.”
Taha noted that when the degree of financing becomes too negative, the Bitcoin market is often susceptible to a short pressing, where short traders are forced to cover their positions due to rising prices – which drives a further upward movement. In addition, extremely low financing levels have historically been correlated with local price bottoms, previously haus -like trend uses.
Bitcoin price
From this writing, BTC’s price is about $ 96,950, which reflects an increase of 2% over the past 24 hours. Suppose BTC’s latest Haussearted Momentum and the latest observation on the chain is something to pass by, there is a strong chance that the foremost Cryptocurrency will make a return over $ 100,000 this weekend.
The price of BTC on the daily timeframe | Source: BTCUSDT chart on TradingView
Image from iStock, chart from tradingview
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