The price of bitcoin in recent days seems to have attenuated the confidence of investors in the asset for the moment, the community seeing less buzz while the BTC sees fewer green days.
Regardless of this, some analysts are always impatient to analyze the BTC and its major metric to at least obtain a perspective in the event of hope at the corner of the street.
An example is a cryptocurrency analyst known by the pseudonym “Avocado Onchain” who recently shared an overview of BTC focused on the funding rates of binances. Funding rates, which represent the cost of keeping long or short positions on the long -term market, can give an overview of the feeling of the market.
A decrease in financing rates often suggests growing pessimism, as traders who previously occupied upward positions are forced to cover their positions due to assembly loss. This change in feeling can have cascade effects, leading to mass liquidations and other price reductions.
Binance financing rate and rebound potential
Avocado, recently examined the implications of binance funding rates in a position entitled “The funding rates of the monitoring of surveillance: Will Bitcoin bounce after an extreme fear?” According to the analysis, a notable wave of long -standing liquidations occurred recently, leaving the market in a state of extreme fear.
Binance financing rates, a platform known for its large retail investor base, have shown a model that could refer to future price movements. Historically, negative financing rates on the binance have been relatively rare, but when they occur, they have often preceded significant price rebounds.
Avocado suggests that this dynamic is linked to the behavior of retail merchants, which dominate the commercial volume of Binance. When these traders display increased fear – manifested by negative financing rates – Bitcoin tends to challenge the feeling and recover.
The analyst also stressed that during previous bulls markets, the Bitcoin price rebounded after reaching negative financing rates launched by large -scale liquidations.
This historic model could indicate that, although the current market environment seems dark, an additional drop in funding rates could report a reversal. Essentially, if negative funding rates reappear on binance, this may suggest that the market has reached a capitulation point, often a precursor of a sustained recovery.
Bitcoin market performance
Meanwhile, Bitcoin continued to deal with challenges in his ascending momentum. Although the assets briefly bouncing at $ 100,000 earlier in the day following a mixed American job report, he quickly lost ground and could not support this recovery.
At the time of writing this document, BTC is negotiated at $ 98,226, reflecting a modest gain of 1.8% in the last day. Interestingly, while Bitcoin’s price was higher at that time last week, today’s trading volume exceeds last week’s levels. Until now, so far, the daily BTC volume has increased from $ 34 billion last Friday to more than $ 55 billion today.
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