Bitcoin has a tendency to sharply correct in a short period after a new weekly candle opens. This flushes out overleveraged longs and brings some balance into the market.
Prior to the weekly candle open, the funding rate of the Bitcoin futures market ranged between 0.1% to 0.15%. This is 10 to 15-fold higher than the default 0.01% funding rate.
Although the funding rate of Bitcoin has remained relatively high throughout the bull cycle, a 0.15% funding rate indicates that the market is extremely overcrowded.
The combination of a high Bitcoin futures funding rate, the presence of a CME gap, and whales depositing to major U.S. exchanges likely fueled the drop.
After the drop, traders are anticipating a gradual recovery. Scott Melker, a cryptocurrency trader and technical analyst, said that recent history indicates dips do not last long.
Кой разбрал - разбрал
Коментар