Bitcoin Funding Rates Turn Positive, Why The Rally May Not Be Over

News BTC

Bitcoin funding rates had fallen below neutral two weeks ago after finally recovering from a month-long downtrend. This had sparked fears of another bearish trend starting in the market. However, this has quickly changed as the numbers for last week have come in. This time around, the bitcoin funding rates are painting a better picture for the digital asset.

Funding Rates Return To Neutral

The bitcoin funding rates for the last week have been more optimistic compared to previous weeks. This is because it had continued to maintain its positive at neutral for the whole seven days; there was not a single point in the week that funding rates had actually fallen below neutral. This is the first time since March that the funding rates have consistently remained above the negative level for a while week.

How To Get Free Crypto  

A recovery in funding rates is always a welcome change for the market, this is why last week’s day remains important. With a market such as this, where bitcoin continues to struggle to comfortably break above $23,000, there needs to be a significant change in not only sentiment but in the amount of money being injected into the space.

5 BTC + 300 Free Spins for new players & 15 BTC + 35.000 Free Spins every month, only at mBitcasino. Play Now!
BTC funding rates return to neutral | Source: Arcane Research

With funding rates recovering to neutral, it once more puts it on a path towards becoming neutral, something that has eluded bitcoin for most of the year so far. The trend, which had started in June, has now reached an acceptable point, but the end game remains for finding rates to turn positive if bitcoin is to continue on a bull rally.

BitStarz Player Lands $2,459,124 Record Win! Could you be next big winner?

Get 110 USDT Futures Bonus for FREE!
BTC trading below $23,000 | Source: BTCUSD on TradingView.com

Will Bitcoin Recover?

Bitcoin is still trending at $22,800, which has surprisingly become a support level for the digital asset. This level continues to hold tentatively but needs a big push to rise out of this level. With funding rates recovering, perp traders may likely provide that needed push.

Related Reading: Why Bitcoin Investors Should Pay Attention To The Macro Environment

As for the leverage in the bitcoin market, it remains elevated. This means that more traders are opening positions in the digital asset. But it also puts them in a precarious position in a situation where liquidations could pile up quickly, especially with a move below $22,000.

Coinbase Banner  
Read our comparison of 50 different crypto casinos. Find out who has most generous bonuses, best UX, knowledgeable customer support and best provably fair games.

Nonetheless, the bull indicators remain strong, albeit a bit weaker compared to last week. The resistance at $23,000 is not as strong as bears would like, which puts the next major resistance well above $23,500. If bitcoin can beat the 50-day moving average once more, then it is likely to surge above $24,000 once more.

Featured image from The Economic Times, charts from Arcane Reseach and TradingView.com

Follow Best Owie on Twitter for market insights, updates, and the occasional funny tweet…

Go to Source
Author: Best Owie


Recommended Crypto Services, Products and Strategies:

The first thing any crypto investor needs is is a reliable and secure Crypto Wallet.  Whether you’re looking for an online wallet, hardware wallet, desktop or mobile wallet, Crypto Renegade provides you with all the Best Crypto Wallets in each category.

Best Crypto Wallets Banner

When you’re ready to buy more crypto, or exchange your coins for others, Crypto Renegade’s list of the Best Crypto Exchanges has you covered.  The Crypto Exchanges recommended here offer everything from simplicity and convenience to advanced trading platforms and profit sharing. 

Best Crypto Exchanges Banner

If you want to learn more about the methods and tools that can be used to find Great Crypto Projects, then be sure to check out Crypto Renegade’s strategy for How To Find The Best Cryptocurrency.

Crypto Strategy Banner

For those people that don’t have any money to invest right now, or just want to understand the technology a bit more, you’ll definitely want to check out Crypto Renegade’s Free Crypto Strategy and start collecting Free Coins today!

Free Crypto Banner

What do you think about cryptocurrency? Do you have any questions about it? Be sure to leave a comment below.

This site uses Akismet to reduce spam. Learn how your comment data is processed.