Bitcoin Primed For A Short Squeeze

Santa Rally after all? On-chain analysis shows that Bitcoin is primed for a short squeeze. If the bulls push Bitcoin to a daily close above $52k, we may see it sooner than later.  Covered: Bitcoin On-Chain Metrics The Funding Rate Metric Potential Short Squeeze Imminent One of the more critical on-chain metrics to look at […]

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Sky-high Bitcoin funding rates show a leveraged yet bullish market

Bitcoin’s perpetual futures funding rate represents the cost traders incur to maintain long or short positions in the perpetual swaps market, with fees shifting between buyers and sellers based on market conditions. Positive funding rates suggest that long positions dominate, reflecting bullish sentiment, while negative rates indicate bearish sentiment as short positions dominate. Changes in […]

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VanEck reissues $180K Bitcoin price target for current market cycle

VanEck says BTC can reach a price of $180,000 this cycle but warned that elevated funding rates could be showing early signs of overheating. 

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Number Of Bitcoin Bulls Increases As Funding Rate Shows Steady Growth Details

Bitcoin has rebounded strongly from the $65,000 mark after a 6% dip from Mondays high of around $69,500. Despite the recent pullback, BTC remains in a bullish trend that has been in place since early September. This rebound shows resilience, helping maintain the bullish market structure.  Key data from CryptoQuant reveals that the average funding rate has steadily grown since September, indicating that bullish sentiment is increasing as more traders actively engage in the market. Related Reading: Solana Stays Strong Despite BTC Drop $176 Next? The coming two weeks will be pivotal for Bitcoin as it approaches Marchs all-time high. Investors and analysts closely watch price movements as BTC builds momentum toward breaking key resistance levels. If the bullish trend continues, Bitcoin could be poised for another significant rally, with the potential to set new highs shortly. However, any failure to hold current levels could bring renewed volatility. Bitcoin Showing Strength Despite a recent dip, Bitcoin remains strong above key demand levels, maintaining the overall bullish structure. Analysts and investors are closely monitoring the price action for confirmation that the current phase is simply a bullish consolidation before the next leg up.  CryptoQuant analyst Axel Adler shared data on X, highlighting the BTC futures perpetual funding rate, which has shown steady growth since Bitcoin reached the $60,000 level. This indicates a growing number of bulls entering the market, with optimism rising as the price pushes higher. Adler suggested that bullish momentum will likely continue as long as this funding rate increases, reinforcing that BTC is in a healthy consolidation phase. However, this doesnt guarantee an immediate breakout. There is still a significant chance that Bitcoin may trade sideways over the next few days. Sideways price action could be essential for building liquidity, allowing the market to gather strength for a larger move. Related Reading: Dogecoin Breaks Above $0.12 Level Time For DOGE To Catch Up? While the market sentiment remains optimistic, especially with the ongoing increase in bullish activity, investors should prepare for potential fluctuations. The next major price action could go in either direction, but the steady support above key levels is a positive indicator for those betting on further upside in Bitcoins price. BTC Holding Above Key Demand  Bitcoin is holding strong above the $66,000 level after finding support around $65,000. Currently trading at $67,100, the market seems to be in a consolidation phase, and it may take some time before a breakout above the crucial $70,000 level.  For the bulls to maintain momentum, its essential that the price holds above $65,000 or finds support around the $64,300 mark, where both the 4-hour exponential moving average (EMA) and moving average (MA) align. Related Reading: Bitcoin Bears Lose Control As BTC Net-Taker Volume Shifts Positive If Bitcoin fails to maintain these support levels, a deeper correction could be expected, with the price potentially retracing to lower demand zones around $60,000. On the other hand, if BTC manages to break and hold above $70,000 in the coming days, this could trigger a strong rally toward challenging all-time highs. With investors closely monitoring key support and resistance levels, the next few days will be crucial for determining Bitcoins direction. Featured image from Dall-E, chart from TradingView

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Bitcoin Funding Rates On BitMEX Turn Deep Red, Here’s Why This Is Bullish

Data shows the Bitcoin funding rates on the cryptocurrency exchange BitMEX have turned quite negative recently. Here’s why this may be bullish. Bitcoin Funding Rates On BitMEX Have Plunged To Deep Red Values As pointed out by an analyst in a CryptoQuant post, BTC felt a bullish boost the last time this pattern was observed. The “funding rate” is an indicator that measures the number of periodic fees that futures traders on a derivative exchange are currently exchanging between each other. When the value of this metric is positive, it means the holders of long contracts are currently paying a premium to the short holders in order to keep their positions. Such a trend implies that the majority of the investors on the exchange hold a bullish sentiment right now. On the other hand, negative values of the indicator suggest the shorts are overwhelming the longs at the moment. Naturally, this kind of trend is a sign of a bearish mentality being more dominant among the futures traders on the platform. In the context of the current discussion, the relevant derivative exchange is BitMEX. Here is a chart that shows the trend in the Bitcoin funding rates for this platform over the last year and a half: Looks like the value of the metric has been quite red in recent days | Source: CryptoQuant As shown in the above graph, the Bitcoin funding rates on the BitMEX exchange have taken a plummet toward deep negative values recently. This means that a large number of short contracts are piling up on the platform in comparison to long contracts. Related Reading: oin Plunge Under $28,000 Only Temporary? This Metric Suggests So Generally, when the futures market becomes too unbalanced towards any one side, a sharp price move in the opposite direction to what the investors are heavily betting on becomes more probable. This is because a mass liquidation event, called a “squeeze,” is generally more likely to take place towards the side that has more contracts open. In a squeeze, a swing in the price triggers a large amount of simultaneous liquidations and these liquidations only end up fueling said move further in return. A cascade of liquidations can then occur thanks to this amplified price move. Since the funding rates on BitMEX are heavily lopsided towards the negative side right now, a short squeeze is a possibility in the near term. From the chart, it’s visible that the indicator displayed a similar trend just earlier in the year. This negative spike in March occurred as Bitcoin’s price plunged below the $20,000 level, but these red values were only temporary, as a short squeeze took place not too long after and lead to BTC recovering in spectacular fashion. Related Reading: Litecoin (LTC) Falls Under $80, Is It Time To Buy Now? The metric observed some even more negative values following the November 2022 FTX crash, but the price didn’t see any appreciable surge following them. Though, nonetheless, Bitcoin still saw the bottom coincide with the red BitMEX funding rates. It now remains to be seen whether the pattern that was seen in March 2022 repeats this time as well, with BTC observing a short squeeze that reverses the current decline. BTC Price At the time of writing, Bitcoin is trading around $27,500, down 4% in the last week. BTC seems to have plummeted over the last couple of days | Source: BTCUSD on TradingView Featured image from iStock.com, charts from TradingView.com, CryptoQuant.com

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Bitcoin Funding Rates Most Positive Since Feb, Long Squeeze Soon?

Data shows that Bitcoin funding rates have risen to the greenest levels since February 2023, something that could increase the risk of a long squeeze. Bitcoin Funding Rates Are At Highest Levels Since February As pointed out by an analyst in a CryptoQuant post, longs have accumulated in the market recently. The “funding rates” is [...]

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