Bitcoin price has stalled around a high of $ 10,000 for the past few days despite having risen sharply earlier this week. At press time, BTC is trading at $ 10,969, not yet surpassing $ 11,000. Analysts are sure that investors should prioritize buying Bitcoin right now.
This is why the proposed Bitcoin price goes higher
Crypto trader Cantering Clark shared the chart below, noting that he thinks sellers could be trapped. This could result in a situation where Bitcoin spikes, thus liquidating or ceasing these sellers.
He stated:
“I keep seeing bears talking about trapped buyers here. I am seeing the opposite. Basis still favoring opening up a long. CVD showing more of a turn than price, and I would not look at it as leading but as being sellers absorbed, taking a “101” level backside short. $BTC.”
A proof of bullish expectation is the state of Bitcoin futures funding rates. The funding rate of a crypto derivative is the fee that long positions pay short positions to ensure that the price of the derivative trades in line with the price of the index, which derives its price from spot markets.
According to ByBt, a cryptocurrency derivative tracker, the funding rates of the top Bitcoin futures markets are broadly negative. This includes Binance, BitMEX, OKEx, Huobi, and ByBit.
While this may suggest to investors that Bitcoin’s popular trend is bearish, negative funding rates are often seen before the trend returns higher.
Negative rates suggest to some that sellers are too aggressive, making a reversion to mean likely. Furthermore, as AZCoin News reported, the negative interest rates might help increase Bitcoin approval rates.
Read more:
- Ten Indicators Suggesting That Bitcoin Price Is Currently A “Buy” From A Long-Term Perspective
- Now Signs Appearing That Bitcoin Price Could Suggest The Rally Was Nothing More Than A Bull Trap And Retest Of Resistance Turned Support