Bitcoin Funding Rates Are Climbing As Price Continues To Struggle
July 07 2022 - 1:00PM
NEWSBTC
Bitcoin has been struggling over the last couple of weeks and
funding rates have responded in different ways to the price.
Instead of a rise in funding rates when the price had begun to
plummet, they had stayed muted and had even begun to decline,
especially during the past week. However, this is changing as the
price of the digital asset has begun to take a turn for the better.
Funding Rates Recover Bitcoin funding rates declined to one of
their lowest points last month and this had been when the price of
the digital asset had been higher. At that point, long traders
remained relaxed, opting to stay out of the market while the crash
raged on. This has now changed given that long traders have begun
to move into the market. Related Reading | Altcoins Take The
Lead As Bitcoin Struggles To Hold Above $20,000 Funding rates
across Binance and Bybit crypto exchanges have been showing a good
recovery trend over the last week. Although it remains below
neutral, it is close to reclaiming this level. Bybit has seen its
bitcoin perpetuals recover to 0.01% over the past weekend. Binance
still remains in the negative territory but a total average of the
two has returned an average of 0.003% in the perps market. It
is obvious that long traders are now rousing from their slumber.
This time around, it is with tremendous vigor as evidenced by the
growth rate recorded over this time period, going from negative to
positive so quickly. Funding rates begin recovery | Source: Arcane
Research There is no telling if this recovery trend will continue
in the new week or if this is just a one-off. However, if it turns
out to be the former, then the current recovery in the price of
bitcoin may not be a short-lived one after all. Bitcoin Bouncing
Back After a gut-wrenching month of June, July has big better
tidings for the digital asset. Now, it has not been as good as
investors were hoping but bitcoin has been having better luck
holding on to its $20,000 support level compared to a couple of
weeks back. Related Reading | SEC Still Against Spot-based
Bitcoin ETFs. Is There A Light At The End Of The Tunnel? This week,
the digital asset has recovered a good chunk and has been close to
testing the $21,000 resistance level once more. It still remains
under key technical levels but the return in positive sentiment
shows that there may be more recovery to come. BTC continues
recovery trend | Source: BTCUSD on TradingView.com As bitcoin
funding rates recover and long traders become more active, it will
be no surprise if bitcoin were to test the $22,500. An unlikely
level as of now but doable as long as the sell-off fatigue holds in
the market. Bitcoin is trading at $20,860 at the time of this
writing. It remains the largest cryptocurrency with a market cap of
$398 billion. Featured image from Verve Times, charts from Arcane
Research and TradingView.com Follow Best Owie on Twitter for market
insights, updates, and the occasional funny tweet…
Bitcoin (COIN:BTCUSD)
Historical Stock Chart
From Aug 2024 to Sep 2024
Bitcoin (COIN:BTCUSD)
Historical Stock Chart
From Sep 2023 to Sep 2024