Overheated rally? 3 warning signs emerge for Bitcoin as funding rate soars
Bitcoin is rallying as buyers in the U.S. continue to drive the price up, but signs of overheating are emerging in Asia. Bitcoin (BTC) is continuing to rise to new heights above $35,000 on Wednesday as U.S. buyers on Coinbase further drive up the price. But the BTC futures market’s funding rate is also surging alongside futures open interest.The combination of a high funding rate, whales in Asia selling and a record-high futures market open interest raises the chances of a short-term correction.BTC/USDT daily candles chart (Binance). Source: TradingView.comWhat’s more likely, a correction....
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Bitcoin has undergone a strong rally higher over the past week, reaching highs of $13,250. Looking at derivatives trends, one analyst recently postulated that Bitcoin’s price action may be overheated. The aggregated open interest and CVD of BTC futures markets are meeting notable resistances, he noted. Bitcoin May Be Overheated, Analyst Fears as Funding Rate Moves Higher Bitcoin has undergone a strong rally higher over the past week. The leading cryptocurrency has shot from $11,200, […]
The Binance Futures funding rate overtook Deribit on Dec. 18, which has historically led to Bitcoin to consolidate or pull back. The Bitcoin (BTC) futures funding rate on Binance Futures overtook Deribit on Dec.18, according to data from CryptoQuant. Historically, when this happened, the dominant cryptocurrency saw a local top or consolidation.The funding rate of major cryptocurrencies, including Bitcoin and Ether (ETH), rose considerably in the past 48 hours. This typically indicates that the futures market is overheating, which raises the probability of a pullback.Binance Funding vs.....
Data shows the Bitcoin Funding Rate has remained negative during the latest price rally, a sign that short behavior is dominant. Bitcoin Funding Rates Are Red At The Moment In a new post on X, on-chain analyst Checkmate has talked about the trend in the Funding Rate of Bitcoin. The “Funding Rate” refers to an […]
The price of Bitcoin declined steeply overnight and three factors are likely behind the unexpected pullback. The price of Bitcoin (BTC) dropped sharply from $37,800 to $35,000 overnight, liquidating $572 million worth of cryptocurrency futures positions.There are three major reasons why the price of Bitcoin declined steeply in the past 12 hours. The reasons are an overheated derivatives market, growing doubt in the market, and the lack of upside volatility.BTC/USD 15-minute candle chart (Bitstamp). Source: TradingviewDerivatives market was overheated before the correctionBefore the....
The highly anticipated public listing of Coinbase stock is leading Bitcoin and Ether to rally, but what will happen afterward? Bitcoin (BTC) and Ether (ETH) have continually surged toward record highs, causing the futures market of Bitcoin to see a substantial increase in volume and open interest. The term “open interest” refers to the total sum of active trades in the Bitcoin derivatives market. Currently, the open interest of the Bitcoin futures market is hovering at historic highs, currently $27.43 billion.Following the Coinbase listing, traders and investors generally anticipate the....