bitcoin is btc/bitcoin-price-dips-63500/” rel=”nofollow noopener” target=”_blank”>looking to get in back in the realm of the $65,000 price tag bitcoin/bitcoin-price-falling-today/” rel=”nofollow noopener” target=”_blank”>amid price volatility in the last 24 hours. The latest figures from two different metrics suggest that this could become a reality soon and that bitcoin could be on track to experience a price rally. As one crypto analyst noted on social media, bitcoin's rate and funding base point to an “upside.”
bitcoin is getting ready
According to a social media post by Will Clemente, a popular crypto analyst, both the funding rate and the 3-month annualized basis for bitcoin are beginning to cool after briefly reaching negative readings in recent weeks. What this means is that long trades for the asset are starting to dominate as investors regain confidence in its value. btc/bitcoin-price-uptrend-65500/” rel=”nofollow noopener” target=”_blank”>potential price action iIn the next weeks.
Related Reading: Shiba Inu Whale Moves 1.7 Trillion SHIB As Prices Struggle, Where Are They Headed?
<blockquote class="twitter-tweet”>
I took a good look at the market for the first time in a week.
Funding rates and basis have cooled after briefly reaching negative readings, while stablecoin supplies are rising again. It seems that we are consolidating before the next leg. pic.twitter.com/OHLkMrTqUY
— Will (@WClementeIII) twitter.com/WClementeIII/status/1787820489739489318?ref_src=twsrc%5Etfw” rel=”nofollow noopener” target=”_blank”>May 7, 2024
A detailed look at the chart shared by Clemente shows that the funding rate, in particular, has been swinging in negative readings since the last week of April and reached its lowest level on April 22. However, the current price action has pushed the funding rate into positive territory again. The btc funding rate has recovered from a negative rate of -0.0050% on May 4 to a current rate of 0.0090%, according to data from Coinglass. Interestingly, this increase in the funding rate translated into a simultaneous increase in the price of bitcoin, with the cryptocurrency reaching $64,000 on May 5.
While the funding rate may appear low, it indicates that investor sentiment is bitcoin/heres-when-bitcoin-peak-accelerated-bull-run/” rel=”nofollow noopener” target=”_blank”>starting to be positive. When the funding rate is positive, traders holding long positions pay a funding fee to traders holding short positions. An increase in this funding rate means that more traders are willing to pay more to hold long positions, which in turn could lead to an increase in the price of the crypto.
<img decoding="async" class="size-medium wp-image-298890 aligncenter" src="https://bitcoinist.com/wp-content/uploads/2024/05/bitcoin-1.png?w=512&resize=512%2C268″ alt=”bitcoin 1″ width=”512″ height=”268″ data-recalc-dims=”1″/>
Source: x
Similarly, Clemente noted in his analysis that the 3-month annualized rate for bitcoin is now starting to rise again. A consequence of this is that more investors will be willing to buy bitcoin cash and simultaneously sell a futures contract that expires in three months. Interestingly, this annualized rate is currently hovering between 5% and 10% on Binance and Bybit, which is generally a bullish sign for many investors.
<img loading="lazy" decoding="async" class="alignnone size-medium wp-image-298891 aligncenter" src="https://bitcoinist.com/wp-content/uploads/2024/05/bitcoin-2.png?w=512&resize=512%2C268″ alt=”bitcoin 2″ width=”512″ height=”268″ data-recalc-dims=”1″/>
Source: x
The total supply of stablecoins has started to rise again, which could indicate that investors are preparing to pour money into bitcoin. According to on-chain data, wallets with between 100 and 1000 btc have bitcoin/bitcoin-monster-whale-boost-1-2-billion-etf-purchase/” rel=”nofollow noopener” target=”_blank”>increased their purchases in the last two months.
Related Reading: Dogecoin Holders See 82% Profits, What About Shiba Inu?
Despite bitcoin's correction in April, these addresses continued to acquire more Bitcoins. Analyst Willy Woo x.com/woonomic/status/1787784015740862554″ rel=”nofollow” target=”_blank”>He noted that An accumulation of this size by “high net worth bitcoin holders” over a 2 month period has never been seen.
At the time of writing, bitcoin is trading at $62,350.
x/xULHJsKQ/” alt=”Tradingview.com bitcoin Price Chart” width=”3286″ height=”1576″/>
btc price drops to $62,000 | Source: BTCUSD on Tradingview.com
Featured image from MarketWatch, chart from Tradingview.com
<script async src="//platform.twitter.com/widgets.js” charset=”utf-8″>
