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


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.

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.

Bitcoin funding rates

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.

Bitcoin price chart from TradingView.com

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.

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…



Related Posts

Bitcoin Price Breaking $25k Resistance Will Push These 3 New Cryptos to The Moon

Bitcoin Price Breaking $25k Resistance Will Push These 3 New Cryptos to The Moon

Bitcoin’s breakout – if it can manage to break through the $25,000 resistance – could send several new altcoins to the moon given their low market cap….

SHIB

SHIB On Fire – And A Bull Run Could Be Around The Corner – Here’s Why

Shiba Inu (SHIB) price has spiked by over 30%, signifying a bull run may not be far away. SHIB price surged by over 30% on August 14…

Ethereum

Ethereum Indicators Suggest ETH at Potentially Significant Turning Point

Ethereum is slowly moving lower below $1,900 against the US Dollar. ETH must stay above $1,850 to avoid more losses in the near term. Ethereum started a…

XRP price

XRP Price Could Rise If It Clears This Price Barrier

XRP Price has witnessed consolidation between the $0.30 and $0.37 mark for a considerable number of trading sessions. Over the last 24 hours, the altcoin has managed…

Elon Musk

Elon Musk Says He’s Buying Football Club Manchester United – Will He?

Elon Musk is once again causing a stir on Twitter by revealing his intention to purchase popular football club Manchester United. The eccentric chief executive of Tesla and…

Soneva's Luxury Resorts Now Accept Crypto Payments

Soneva’s Luxury Resorts Now Accept Crypto Payments – Featured Bitcoin News

Luxury resort chain Soneva has reportedly begun accepting cryptocurrency payments at its resorts in the Maldives and Thailand. “Accepting cryptocurrencies as a payment method is another example…