NEWSLETTER
The price of bitcoin in recent days seems to have attenuated the confidence of investors in the asset for now, since the community sees less hum when btc sees less green days.
Regardless of this, some analysts are still anxious to analyze btc and their main metric to at least obtain a perspective about whether there is hope around the corner.
An instance is a cryptocant analyst known under the pseudonym 'Avocato Ochain' who recently shared a <a target="_blank" href="https://cryptoquant.com/insights/quicktake/67a56023f554423ca5c82592-Monitoring-Binance-Funding-Rates-Will-bitcoin-Rebound-After-Extreme-Fear” target=”_blank”>knowledge In btc focus on Binance financing rates. Financing rates, which represent the cost of maintaining long or short positions in the futures market, can provide information about the feeling of the market.
A decrease in financing rates often suggests a growing pessimism, since merchants who previously occupied bullish positions are forced to cover their positions due to growing losses. This change in feeling can have cascade effects, which leads to massive liquidations and greater price decreases.
Binance financing rates and rebound potential
The avocado, has recently examined the implications of Binance financing rates in a publication entitled “Binance financing rates monitoring: bitcoin will recover after extreme fear?” According to the analysis, a notable wave of long position settlements occurred, leaving the market in an extreme fear state.
Binance financing rates, a platform known for its large retail investor base, have shown a pattern that can hint future price movements. Historically, negative financing rates in Binance have been relatively rare, but when they occur, they have often preceded significant pricing rebounds.
The avocado suggests that this dynamic is linked to the behavior of retail merchants, who dominate the commercial volume of Binance. When these merchants show greater fear, manifested through negative financing rates, bitcoin has tended to challenge the prevailing feeling and recovery.
The analyst also pointed out that during the previous bullish markets, the price of bitcoin has recovered after reaching negative financing rates triggered by large -scale liquidations.
This historical pattern could indicate that, although the current market environment seems gloomy, an additional decrease in financing rates could indicate a reversal. Essentially, if negative financing rates reappear in Binance, it can suggest that the market has reached a capitulation point, often a precursor to a sustained recovery.
Bitcoins market performance
Meanwhile, bitcoin has continued to face challenges in his ascending impulse. Although the asset was briefly recovered to $ 100,000 today after a mixed job report in the United States, it quickly lost ground and could not maintain this recovery.
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At the time of writing this article, btc is quoted at $ 98,226, which reflects a modest gain of 1.8% on the last day. Interestingly, although bitcoin's price was higher last week, today's commercial volume exceeds last week. In particular, until now, the btc daily negotiation volume rose from $ 34 billion last Friday to more than $ 55 billion today.
Outstanding image created with Dall-E, TrainingView graphics
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