Are Bitcoin Bears Losing Out? $31 Million Wiped Out In BTC Shorts Liquidation

The Bitcoin price couldnt sustain the bullish momentum after its ascent to the current all-time-high price of $108,786 in January, leading to a crash to around $74,000 in the following months. However, the premier cryptocurrency appears to have roared back to life. Even as the Bitcoin price sits comfortably above the important six-figure threshold, an important question sticks around is the bullish run truly back on? Recent on-chain analysis suggests that the market leader might be preparing to resume its bull run. Binance Witnesses Largest Shorts Liquidation Since April In a Quicktake post on CryptoQuant, a pseudonymous on-chain analyst, Darkfost, revealed that a large number of short positions were opened on Binance as Bitcoin dropped from its current all-time high price. According to the crypto pundit, this part of the derivatives market was a source of significant selling pressure on the price of BTC in the following months. Related Reading: Bitcoin Advanced NVT Sits Above This Critical Threshold What It Means For Price Action Darkfost went on to explain that as the price of BTC started its recovery, these short positions, expectedly although slowly, got liquidated, becoming buying pressure for the cryptocurrency. This series of slow liquidations, however, spiked on May 8 to a new single-day high since as far back as March. According to CryptoQuant data, over $31 million in short positions were wiped out on Binance, the worlds largest exchange by trading volume. The chart below is of the on-chain indicator showing the amount of liquidations in USD the Short Liquidations USD metric. Furthermore, Darkfost revealed that the relatively low level of funding rates is around 0.004. This trend suggests the abundant presence of short positions in the market, and also the unwillingness of Binance traders to go long.  Darkfost concluded that further liquidations or closures of these short positions could cause Bitcoin’s bullish trend to regain its momentum, thus facilitating further growth of the premier cryptocurrency. The crypto analyst also mentioned the possibility that this potential regain of bullish strength could push the flagship cryptocurrency to break above its previous all-time-high price. Bitcoin Price At A Glance As of this writing, the price of BTC stands at around $104,335, reflecting an over 1% increase in the past day. According to CoinGecko data, the flagship cryptocurrency has grown by nearly 9% in the past seven days. Related Reading: Here Are 5 Reasons Ethereum May Reach $12,000 In 2025 Analyst Featured image from iStock, chart from TradingView

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Bitcoin Sees 4th Dip in Funding Rates This Year What Does This Mean For BTC?

Bitcoins recovery continues to show momentum, with the asset currently trading at $94,288 after gaining 1.6% over the past 24 hours. The price has now risen nearly 15% over the past two weeks, reversing a previous correction phase and pushing BTC closer to retesting the $100,000 price mark. Amid the price performance, recent market analysis points to diverging signals between BTC’s funding rate behavior and growing confidence among US-based investors. Related Reading: Bitcoin Whales Back In Full Force For The Rally, Glassnode Reveals Bitcoin Funding Rates Drop Despite Rising Prices According to Nino, an analyst from CryptoQuant,  the Bitcoin funding ratetypically used to gauge sentiment in the perpetual futures BTC market has again dipped into negative territory, even as whale accumulation continues on major exchanges like Binance and Coinbase. Nino particularly identified a notable development in Bitcoins derivatives market. The 72-hour average of BTC funding rates, including moving average indicators (MA, EMA, WMA), has entered negative territory for the fourth time this year. Funding rates refer to periodic payments made between long and short positions on perpetual futures contracts, with negative rates meaning short positions are paying long positions. This generally reflects that the market is either positioning defensively or becoming cautious at current price levels. What makes this instance notable is that previous dips into negative funding rates occurred at lower price levels, whereas the current shift has taken place above $94,000. Nino suggests this may point to potential market exhaustion or a phase of profit-taking, where short traders are more active despite upward price movement. If volatility increases and funding rates remain suppressed, a spike in liquidations could follow, especially if open interest in leveraged positions expands rapidly. Coinbase Premium and Whale Behavior Reflect US Investor Activity In a separate analysis, CryptoQuant analyst Crypto Dan noted a trend reversal beginning around April 21, accompanied by renewed buying from large holders, or whales. Notably, these purchases were first identified on Binance and were soon followed by similar activity on Coinbase. According to Dan, this pattern may indicate rising confidence among US-based investors and growing participation from institutions or high-net-worth individuals. One supporting metric is the Coinbase premium, which tracks the price difference between BTC on Coinbase and other global exchanges. A positive premium typically reflects stronger demand from US investors. Related Reading: Bitcoin Metrics on Binance Show Shift That Could Precede Market Squeeze As of now, this premium remains in positive territory, suggesting that US market participants are contributing to BTCs recent momentum. Dan concludes that the current phase may signal more than a typical price rebound and could represent a broader shift in market structure, driven by renewed capital inflows and institutional positioning. Featured image created with DALL-E, Chart from TradingView

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Bitcoin Perpetual Swaps Signal Short Bias Amid Price Rebound Details

The Bitcoin market saw another rebound in the past week as prices leaped by over 12% to hit a local peak of $95,600. Amid the ongoing market euphoria, prominent blockchain analytics company Glassnode has shared some important developments in the Bitcoin derivative markets. Related Reading: Bitcoin Apparent Demand Makes Sharp Rebound Will BTC Breakout Soon? Bitcoin Short Bets Rise Despite Price Rally, Setting Stage For Volatility Despite a bullish trading week, derivative traders are approaching the Bitcoin market with skepticism, as evidenced by a build-up of leveraged short positions. In a recent X post on April 25, Glassnode reported that Open Interest (OI) in Bitcoin perpetual swaps climbed to 218,000 BTC, marking a 15.6% increase from early March. In line with market activity, this rise in Open Interest aligns with increased leverage, introducing the potential for market volatility via liquidations or stop-outs.   Generally, a rise in Open Interest amidst a price rally is expected to signal long-term market confidence. However, Glassnodes findings have revealed an opposite scenario. Despite Bitcoin’s bullish strides in the past week, short market positions appear to be dominating the perpetual futures markets. This concerning development is indicated by a decline in the average funding rate, which has now slipped into negative territory to sit around -0.023%. The perpetual funding rate is a periodic payment between long and short traders aimed at keeping the contract price in line with the underlying spot price. A negative funding rate indicates short traders pay long traders as Bitcoins perpetual contract price is trading below the spot price. This is caused by a higher number of short positions as traders are largely bearish about Bitcoin, even despite recent gains. Furthermore, the 7-day moving average (7DMA) of long-side funding premiums has dropped to $88,000 per hour, reinforcing this short-dominant sentiment. This downtrend indicates a waning demand for long positions, as traders exhibit a short bias. However, Glassnode presents a bullish note stating that the present combination of rising leverage and short positions paves the way for a potential short squeeze, where an unexpected upward price move forces short-sellers to close their positions, thereby driving prices even higher. Bitcoin Price Overview At the time of writing, Bitcoin trades at $94,629 following a 1.01% retracement from its local peak price on April 25. Despite creeping developments in the perpetual futures market, the BTC market remains highly bullish, indicated by gains of 1.02%, 11.12%, and 8.32% in the last one, seven, and thirty days, respectively. With a market cap of $1.88 trillion, the premier cryptocurrency ranks as the largest digital asset and fifth-largest asset in the world. Related Reading: Ethereum To Hit $5k Before Its 10th Birthday, Justin Sun Says Featured image from Adobe Stock, chart from Tradingview

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Bitcoin Funding Rates Hit 14-Month High – What Could This Mean For The Market Leader?

The crypto market has started the year 2023 with a remarkable, bullish run. Over the last few days, several assets have recorded significant profits and are starting to pull through the crypto winter. Most notably, Bitcoin, the market leader and the world’s biggest digital asset, has been one of the top-performing coins this year. In the last seven days, BTC gained by more than 17%, allowing the coin to surpass the $20,000 price mark for the first time since the start of the FTX crisis. Bitcoin’s impressive price rally has generated much excitement among the crypto community, along with a significant rise in the positive sentiment around the entire crypto market. However, it appears there might be a need for alertness among investors in the coming days.  Related Reading: Bitcoin Price Touches $20,000 For First Time Post-FTX Collapse Bitcoin Records Highest Funding Rates In Over A Year  According to a post by Maartun, a top analyst on the crypto analytics platform Crypto Quant, Bitcoin funding rates have attained their highest values in 14 months. The Crypto Quant contributor further stated that the occurrence of high funding rates such as these usually resulted in Bitcoin experiencing a price pullback.  Funding rates are recurring payments made to either traders in a long or short position, depending on the difference between perpetual contract markets and spot prices. In essence, these payments serve as a method of maintaining the price of perpetual contracts close to the spot price of an asset – in this case, Bitcoin. That said, when there are highly positive funding rates on crypto exchanges, it indicates that traders are betting on the BTC/USD market to attain higher prices and are paying to go really long on BTC.  Trading positions such as these can be quite risky, as any slight price drop might lead to high levels of liquidation or force these traders to close their positions.  Therefore, these funding rates are definitely something that all BTC investors should keep their eyes on in the coming days. For now, Bitcoin is holding its ground, having gained by 1.83% in the last 24 hours, according to data by CoinMarketCap. At press time, the premier cryptocurrency is trading at $20,722.66, with a market cap value of $399.23 billion.  BTC Trading at $20,716 | Source: BTCUSD Chart on Tradingview.com.  Related Reading: Whale Moves Huge Amount Of Shiba Inu Tokens As SHIB Unveils To Metaverse What To Expect From Bitcoin In 2023? According to the popular price prediction site, BitNation, Bitcoin could attain a peak price of $37,307.77 before the years run out. Their price forecast also states that BTC investors should expect an average price of $31,084.84.  However, the team at Tradingbeasts are predicting a rather bearish Bitcoin market for 2023. According to their price projections, BTC is expected to record slight losses all through the year, closing its annual market with a maximum price of $18,339 and an average price of $14,671. So far, Bitcoin has shown a strong performance in 2023, gaining by over 25% since the beginning of the year. No doubt, the premier cryptocurrency is one asset to look out for in 2023.  Featured Image: Forbes, Chart from Tradingview.com  

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Ethereum Funding Rates Hit The Low Amid The Shift From PoW

The Ethereum upgrade has shifted the network from Proof-of-Work (PoW) to Proof-of-Stake (PoS). The Ethereum mainnet and the Beacon Chain will finally merge as a single blockchain through the transition. According to the estimations of EtherNodes, the Ethereum transition will occur if there are no underlying technical challenges. Before now, the team of developers confirmed the checklist for the Merge before releasing it. Related Reading: Investor Sentiment Sees Sharp Positive Spike Following Crypto Market Recovery There have been several sentiments and reactions concerning the Merge lately. This significantly impacted ETH and all its derivatives in the crypto market. Some participants are accumulating more expecting a sudden spike in price. But some are even disposing of what they have due to fear of volatility. Sentiments On Merge Affects ETH Funding Rates Currently, expectations and more attention are glued to the Ethereum blockchain. But based on the state of the miners, there could be variation in the transition estimated time. From the look of things, the ETH futures traders seem to be calculating their moves. The data from CryptoQuant revealed that Ethereum funding rates had hit a new all-time low. This recent point marks the lowest for the Ether derivatives. ETH funding rate is a metric that provides forced convergence of prices between the contract and the underlying asset. It indicates the payment that comes from long to short or short to long traders. The difference between an asset’s spot and the perpetual futures contract prices provides the funding rate. Negative Value For Ethereum Funding Rates And Implication CryptoQuant data give a negative value for the Ethereum funding rates. This means that the dominant force in the order book goes to short traders. Hence, will be paying long traders accordingly. Futures traders place high importance on funding rates. This is because these rates are like spontaneous catalysts that could alter their trading stance positively or negatively. As a result, they will make huge profits or suffer massive losses. Related Reading: Bitcoin Must Hold This Level Or Risk Falling To $10,000 Usually, traders that pay high funding while using high leverage will likely have losses. However, such a flip is possible to occur even when the market is not under a severe bearish influence. So, they may resort to hedging as protection. The negative value of the ETH funding rates implies that futures traders are currently hedging their spot exposure. A considerable explanation for such results points to the Merge. Hence, the traders could exercise more caution due to potential volatility that could erupt after the transition. Featured image from CNN, chart from TradingView.com

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Bitcoin Funding Turns Negative amid 70% of BTC Circulating Supply Being Hodled

BTC funding flipped negative following long liquidations as prices slipped to lows of $42,000. (Read More)

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Ethereum Leaves Bitcoin Behind, But Is This Rally Sustainable?

Ethereum has left Bitcoin in the dust with its latest rally towards $3,100. Heres whether this run is sustainable based on futures market data. Ethereum Has Separated From Bitcoin With Over 7% Jump In Past Week While Bitcoin has been in consolidation lately, Ethereum appears to have been putting together bullish momentum entirely of its [...]

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Curve (CRV) Observes 7% Bounce As Short Squeeze Occurs

Curve DAO token (CRV) has observed a 7% bounce during the last 24 hours as mass liquidations of short traders have occurred in the market. Curve Funding Rates Turned Extremely Negative Following Price Decline According to data from the on-chain analytics firm Santiment, an extreme amount of shorts had accumulated on the cryptocurrency exchange Binance [...]

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Bitcoin Traders Retain High Leverage Amidst Decline In Funding Rates Details

After hitting the $100,000 milestone, Bitcoin suffered a sudden price crash on Friday resulting in an estimated price loss of 7%. During this decline, the assets perpetual funding rates in the derivative markets took a hit. However, traders may yet retain enough leverage to strongly influence price volatility. Related Reading: Bitcoin On Track To Replace Gold In 10 Years, Trading Firm Predicts Bitcoin Short-Term Outlook Uncertain Due To Heightened Leverage In an X post on December 6, blockchain analytics firm Glassnode expressed that Bitcoins perpetual funding rate may hold significant implications for the assets short-term price.  For context, perpetual funding rates are periodic payments made between traders in the perpetual futures market to ensure the contract price aligns with the spot price of Bitcoin. Positive funding rates indicate that long positions are paying shorts, which is bullish while negative funding rates represent the vice versa. According to Glassnode, BTCs perpetual funding rates initially showed signs of stabilization on its weekly frame amidst speculative demand. However, the assets surge to $100,000 on Thursday driven by increased market leverage saw these funding rates rise by 3.6x their weekly average.   Notably, Bitcoins perpetual funding rate hit a peak of 0.062, representing its highest value since April. Importantly, the analytics team at Glassnode notes that this rate spike suggests significant influence by the derivative market on Bitcoins ascent above $100,000. However, Bitcoins flash price resulted in a major decline in its funding rates slightly above 0.024. Despite this fall, Glassnode states these rates are still relatively high compared to earlier this week, indicating the Bitcoin market still contains a significant level of leveraged positions.  This residual leverage in the market indicates a strong potential for increased price volatility. Therefore, Bitcoins price movement in the coming days appears unclear as a reversal on either side could trigger a significant level of liquidation,  inducing a cascading effect. Related Reading: Bitcoin Price At $100,000: Road To More Gains Or Potential Bull Trap? Analyst Has Answers STH Cost Basis Points To $112,000 Price Target In other news, renowned analyst Ali Martinez has posted a Bitcoin price prediction based on the assets short-term holder (STH) cost basis i.e. the average price at which those who typically acquired BTC over the last 155 days. It indicates a break-even level for these investors.  According to Martinez, the STH behavior indicates that Bitcoin would reach a local top or $112,926 price based on a +1 standard deviation that adjusts the level of STH cost basis upward to account for price volatility and behavioral trends. At press time, Bitcoin trades at $100,137 after its recovery from Fridays crash faced a rejection at $102,000. Meanwhile, the assets trading volume is down by 42.46% and valued at $89.12 billion. Featured image from TradeSanta, chart from Tradingview

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Ethereum Market Turns Optimistic: Funding Rates Hint At Potential $4K Comeback

Amid the broader decline in the global crypto market, Ethereum emerged as one of the major cryptocurrencies that has been impacted significantly. Despite already being underperformed in the recent bull run, Ethereum has now experienced a notable correction, dropping to as low as below the $3,500 price level in recent weeks. While this price performance [...]

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Ethereum Funding Rates Hit Key Bullish Level Price Surge Ahead?

Following Donald Trumps victory in the US presidential election on November 5, Ethereum (ETH), alongside the general cryptocurrency market, has experienced notable price gains. In particular, the second-largest cryptocurrency has witnessed its value increase by 24.31% in the past four days as it approaches a crucial $3,000 resistance zone. Related Reading: Ethereum Analyst Sees Altseason Potential As BTS Is Still Outpacing ETH Time To Buy Altcoins? Ethereum Prepares For Potential Surge As Funding Rates Hit 0.02 Amidst the recent price rally in the last week, crypto analyst Burak Kesmeci notes that Ethereum funding rates have now climbed above 0.02, which can be described as a strong bullish signal.  Generally, funding rates are periodic payments made between traders in the perpetual future contracts during funding intervals. A funding rate of 0.02 indicates long position domination and demands that long traders pay 2% of the notional value of their position to short traders in order to maintain the price of perpetual contracts close to the spot market price of an asset.  According to Kesmeci, long positions in futures markets are crucial to initiating strong bull rallies in the same vein as spot market acquisitions. Interestingly, historical data as shared by the analyst shows that Ethereum has consistently experienced a major price uptrend whenever funding rates have risen and stayed above 0.02. For context, when funding rates hit 0.02 on July 1, 2020, the ETH market recorded a price gain of over 100% in 50 days. Likewise, on November 2, 2020, Ethereum also embarked on a bullish course surging by over 1000% in 350 days. Most recently, Kesmeci notes that the altcoins price grew by 150% in 150 days as the funding rates crossed 0.02 on October 4, 2023. Therefore, the analyst postulates ETH may be primed for a robust bullish run in the coming days. In addition, this potential uptrend is expected to influence other altcoin markets due to Ethereums position as the largest altcoin by market cap. Related Reading: Ethereum L2 Project Spark Launches On-Chain Order Book On Fuel Network To Enhance Trading ETH Meets Crucial $3,000 Resistance Level With Ethereums price hovering above $2,900, the token is set to soon encounter a major resistance at the $3,000 price mark.  According to a report by blockchain analytics company IntoTheBlock, this particular resistance level which can be described as a historically significant demand zone is normally expected to provide much opposition to Ethereums ascent.  However, the current bullish momentum in the ETH market is likely to subdue this resistance, allowing the asset to maintain its current rally. If Ethereum breaks beyond $3,000, the altcoin could attain a $4,000 price target. Albeit a rejection would result in ETH trading as low as $2,400. At the time of writing, Ethereum continues to trade at $2,970 following a 0.98% gain in the last day. Featured image from Mandrex, chart from Tradingview

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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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Dogecoin Buy Signal Hints At Upside As Funding Rate Keeps Rising

Dogecoin tests a critical liquidity area of around $0.112 after days of choppy price action. While the broader crypto market, led by Bitcoin, is experiencing a notable rise from yearly lows, driven by positive economic data and improving sentiment, Dogecoin has yet to catch up. Other altcoins and meme coins have surged, but DOGE remains in consolidation. Related Reading: Analyst Forecasts XRP Bullish Breakout A 1,000% Opportunity? Analysts and investors are closely watching for a signal that could confirm a further uptrend for Dogecoin. The funding rate indicates rising demand, which could support a potential price increase. Top analyst and investor Ali has shared an intriguing buy signal for DOGE, suggesting that gains may be on the horizon. As the market sentiment shifts, traders closely monitor whether Dogecoin will follow the broader crypto trend and break out of its current range in the coming days. Dogecoin Price Is Set To Rise Dogecoin is currently at a crucial level that will determine its price action, as DOGE has struggled to hold above this area since early August. Speculation around DOGE’s performance in the coming months is optimistic, yet Dogecoin must catch up with the gains other meme coins deliver to investors.  Prominent analyst Ali has shared a technical chart on X, showing a buy signal for Dogecoin on the 4-hour price chart. This signal is significant because it appears in a shorter timeframe and often indicates a larger trend shift in the daily timeframe, suggesting a potential upside in the coming days. If this signal plays out, it could begin a stronger upward movement for DOGE. Supporting this optimistic outlook, key data from Coinglass reveals that the OI-weighted funding rate for Dogecoin is rising. A positive funding rate in cryptocurrency markets indicates that the price of perpetual futures contracts is higher than the spot price of the underlying asset. This means long positions are becoming more dominant, and long traders pay short traders a positive funding rate. This dynamic reflects increased demand for DOGE and hints at potential gains ahead. Related Reading: Solana Prepares For A 20% Rally Can SOL Reclaim $176? If Dogecoin can maintain strength above this critical level, it may finally follow the broader market’s uptrend. However, Dogecoin risks further consolidation or a potential drop if it fails to break above and sustain higher levels. For now, investors are watching closely, waiting for a confirmed move that could lead to significant gains for DOGE. DOGE Testing Supply: Breakout Soon? Dogecoin (DOGE) currently trades at $0.112 after several days of sideways trading below the daily 200 exponential moving average (EMA), which sits at $0.116. This level has acted as a key resistance, and breaking above DOGE must gain momentum. If the price manages to recover the 1D 200 EMA and push past the $0.13 mark, it could signal the start of a significant rally for Dogecoin. Such a move would likely reignite investor interest and attract new buying demand, potentially driving higher prices. However, if Dogecoin fails to hold above the $0.11 level and continues to struggle with the 1D 200 EMA, a deeper correction could be on the horizon. In that scenario, DOGE may retrace to lower demand areas around $0.09, where buyers might step in to prevent further downside. Related Reading: Active Dogecoin Addresses Reach Highest Level In 8 Months Is DOGE About To Rally? For now, Dogecoins price action remains in a tight range, and traders are watching closely to see if it can reclaim these critical levels or if a larger pullback is in store. The next few days will be essential in determining the future direction of DOGEs price. 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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Funding Rates Down: Is Bitcoin Heading For A $90K Correction?

Bitcoin’s recent price fluctuations have left investors in a state of uncertainty, as the cryptocurrency has seen a dramatic decline from its peak of nearly $107,000 to around $94,550. This volatility raises essential questions about the ability of Bitcoin to maintain its rally and whether it can regain its footing in the coming weeks. Related Reading: Bitcoin Dominance Fuels $585 Million Crypto ETP Inflows In 2025 Critical Support Levels Under Threat CryptoQuant analyst Shayan has had something important to say about current conditions in Bitcoins. According to him, the price is trying to stabilize right above the value of $92,000 level, which he further says is a key support. He notes that Bitcoin is stabilizing near the $92,000 mark, which he identifies as a crucial support zone. If Bitcoin breaks below this level, it could trigger a wave of long liquidations and push prices down toward the 100-day moving average of $81,000. Also, this line has been performing as a real dynamic support by attracting buying inflows and can also cushion prices during further descent. Shayan underlines the role of market sentiment and technical indicators. At present, Bitcoin is fluctuating at significant support levels which are created in the $90K level and Fibonacci retracement levels at $87K and $82K. If the above-mentioned levels do not hold, there could be further selling pressure with corrections. Bitcoin Bullish Outlook Despite Bearish Fears Amidst this uncertainty, renowned cryptocurrency analyst Crypto Rover has expressed a bullish outlook for Bitcoin. He recently compared todays price action with historical patterns, suggesting that January could see positive trends for Bitcoin. #Bitcoin history is exactly repeating. January will turn green. You’ll regret not buying more here. pic.twitter.com/DCssLNMGh6 Crypto Rover (@rovercrc) January 8, 2025 In a tweet, he stated, Bitcoin history is exactly repeating. January will turn green. Youll regret not buying more here. His analysis indicates that if Bitcoin can break through the critical resistance level of $100,000, it could potentially barrel past $107,000. Big Capital Inflows Rover’s positivity is strengthened by the huge capital inflows in Bitcoin ETFs, which attracted more than $900 million of inflows from institutions like BlackRock and Fidelity. Increasing institutional interest also signals confidence in the long-term prospect of Bitcoin. However, he also cautions that failure to close above the $100,000 mark will lead to a pullback to $92,000 or even lower. The broader cryptocurrency market is feeling the strain too. This decline comes in tandem with Bitcoin’s failure to stay afloat, and other cryptocurrencies such as Ether and Solana have fallen by more than 7%. Related Reading: Bitcoin As The New S&P 500 Of Our Time? This CEO Thinks So Even the traditional stocks of the crypto sector, such as MicroStrategy and Coinbase, have been down sharply. Funding rates falling within the derivatives market adds yet another layer of bearish sentiment around Bitcoin. According to Shayan, the decreasing funding rates had reflected dipping demand for derivatives, which also played a pivotal role in maintaining price trends. Featured image from Pixabay, chart from TradingView

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Caution Reigns As Bitcoin Slips Under $100K And Funding Rates Reflect Fear

Bitcoin started the year with a strong price rally, surging by 5% on January 6th to reclaim the $100k mark for the first time in weeks. The assets price continued its run up to $102,760 before undergoing a healthy correction, pushing it back below $100k. As of press time, Bitcoin trades between $96k and $102k, with total trading volume hitting $6.58 billion. Related Reading: Bitcoin Price Takes a Breather: Gains Reduced Amid Volatility While Bitcoins recent price performance looks healthy, the assets funding rate data tells a different story. Based on Glassnodes data, Bitcoins current average funding rate dropped to 0.009%, below its neutral level of 0.01%. Lower-than-usual funding rate data suggests a cautious long-term trading sentiment for investments, including Bitcoin. After peaking at 0.026% in mid-December, the weekly MA of perpetual funding rates has cooled to 0.009% – just below the neutral 0.01%: https://t.co/CORjRx0X2k This suggests a cautious positioning, with speculators showing limited willingness to pay premiums for long pic.twitter.com/JwSPpZRpeG glassnode (@glassnode) January 7, 2025 A Look At Bitcoins Average Funding Rates The average funding rate is just one of the technical indicators used to assess the markets sentiment on Bitcoin and other investments. A funding rate, expressed in percentage, is set by crypto exchanges for their perpetual futures contracts. If this rate is positive, long positions periodically settle short positions; when its negative, short positions periodically settle long positions. According to data, the funding rates weekly moving average dropped to 0.009%, below the neutral score of 0.10%. This weeks updated funding rate reflects a steep decline from the 0.0026% mid-December, suggesting a cautious investor sentiment for long positions. Is Bitcoins Price Rally Sustainable? Coinglass also shared that the assets Open Interest-Weighted Funding Rate increased to 0.0058% but was still below January 5ths high of 0.0113%. Then, Coinshares also revealed that the Volume-Weighted Funding Rate increased to 0.0051%, but still way below a previous high of 0.0111%. Interestingly, the decline in funding rates indicates that most traders are cautious as Bitcoin struggles to hit and keep the $100k mark. Their reluctance to put their money on leveraged exposure means theyre not confident in Bitcoins ability to sustain its price surge soon. Related Reading: Bitcoin Outflows On Binance Suggest Growing AccumulationBullish Momentum Ahead? Whats Next For Bitcoin? Still, investors can find good news in the market this week. The assets derivatives trading activity increased, with its daily trading volume increasing to $85 billion, or a surge of 42%. Open interest saw a modest increase of 2%, and the assets Long/Short ratio is set at 1.0243, which makes investors sentiment neutral. Also, Bitcoins Chande Momentum Index (CMI) increased to 58.71 during the price rally, which topped $100k, but this slowed down as the price settled below $100k. Featured image from The Independent, chart from TradingView

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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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