The price of Bitcoin rose over Christmas, reaching $ 24,681 on Binance. Following BTC’s fierce march, traders and observers are exploring the issue of short-lived bears and cattle.
The market sentiment around Bitcoin seems to be very good, but future analysts say there are some concerns.
Bitcoin Futures Fund Rates
Bitcoin (BTC) Collected over $ 24,600 with a relatively small short squeeze. In the past four hours, only $ 95 million worth of contracts have been canceled, and the sale of short contracts or orders, which are believed to have not yet begun due to the short squeeze, has had a short-term effect when the futures market melts. When this happens when sales orders are overleveraged, it means that traders are actively selling Bitcoin with loan capital.
The competition has not yet begun due to a short squeeze, so the future market is dominated by buyers and contractors. This trend has raised funds between 0.1% among major futures exchanges. Financial rates are a mechanism used by futures exchanges to lure long-term contractors based on market sentiment. The longer the contracts, the more positive the funding rate. This means that buyers will have to give incentives to the seller.
The average exchange rate of Bitcoin futures on most exchanges is 0.01%. If the fund rate is 0.11%, the trader pays 0.11% of their position as an incentive for short sellers, a minority of the market. Bitcoin is less attractive when traders who buy Bitcoin have to raise funds and pay large sums of money.
Currently, as of December 25, Bitcoin futures are flying at 0.1%. Traders and strategists, therefore, say Bitcoin is less attractive to the BTC and could be at risk of a withdrawal, at least in the short term. Founding partner of Mohit Sorout, Bitazu Capital; Point out To suggest that Bitcoin’s very large fund rate could be reversed: “I would be absolutely surprised if $ btc went from here. ”
Edward Morra, cryptocurrency trader, Iron A similar feeling. He added that traders in the futures market long for or buy Bitcoin when it reaches around $ 24,400. After the fall, he hopes to recalibrate funds after a local correction, Morra tweeted: “Deriv traders have returned the omega bullish to the top without underestimating the decline. Now the spot chads make them flush, Premiums Funds will be sent.
However, some traders do not agree that future funding rates are the most important factor in a strong bull run. Salsa Tekila, an anonymous Bitcoin trader, noted that BTC’s fund rate rose to 0.375% for the 2017 bull market, although prices were higher. Considered in the early stages of the festival, it’s sold out He said Funding rates alone are not accurate enough to predict the top one.
“While waiting for the Wyckoff peak, the ATH shortening on the bull-trail bullfighting route, which looks like a fundraiser, seems very foolish to me. In the 2017 bull era, the fund was 0.375 (maximum).
Given the previous historic price cycle of Bitcoin prices, traders are more cautious about reaching a short-term peak. This could lead to a bull case for BTC in the near future. It revolves around the theory that historical trends in the cattle market will not be repeated.
Bull case for Bitcoin
The short-term and long-term case for Bitcoin is based on two main factors: organizational accumulation and cycling profit into Bitcoin altcoin. As influx into Grayscale continues to rise,
Ki Young Ju, chief executive of CryptoQuant, said Bitcoin was expected to recover when corporate acquisitions slowed. Until then, however, Grayscale’s assets can be seen by managing and evaluating future CME data. He said He will maintain his key bias: “If organizational acquisitions stop, prices can fall sharply. Corporate investors will decide when to buy the new ATH for $ BTC. Until then, I will keep my biased side. “
According to The total assets of the company under management for Grayscale are $ 16.3 billion. Of that, $ 14 billion is from the Grayscale Bitcoin Trust (GBTC). GBTC’s AUM is defined as a metric to measure the organizational attitude of the BTC environment. Because it often enters organizations in the Bitcoin market, especially in the United States.
In the case of short-term and long-term bulls for Bitcoin, the strong institutional accumulation of strong Bitcoin and the dry liquidity of the altcoin market. Santiment, On-Chain Market Analysis Company, Twitter– “As the year draws to a close, the liquidity of most #crypto assets outside $ BTC and $ ETH is rapidly declining. This indicates that most of the interest in crypto is focused around Bitcoin.
The main resilience for Bitcoin is $ 25,000 and $ 30,000, based on mutual heat maps from product indicators. Two sales orders are above and can be temporarily withdrawn as soon as it reaches the resistance zone. Until then, sentiment around Bitcoin remained strong, with high organizational demand and lag behind the altcoin market.