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▲ Bitcoin (BTC)
A forecast of Bitcoin (BTC) rebounding to $70,000 emerged among some experts. However, the overall market funding rate did not send a strong enough bullish signal to confirm this.
According to cryptocurrency media outlet Bitcoinist on June 17 (local time), crypto analyst That Martini Guy claimed that Bitcoin's funding rates were largely negative. He analyzed that there was more profit-taking from long positions than new short positions in the last 24 hours.
That Martini Guy predicted that Bitcoin could see one more rally towards $70,000 before a major correction. However, Bitcoinist drew a line, stating that $70,000 is not a confirmed market signal. This price is an estimated target suggested by the analyst.
Overall market data showed a different trend. Coinglass's aggregate funding rate recorded approximately 0.0044% during the same period, which is close to neutral to slightly positive. This means it is difficult to extrapolate the negative funding rates of some exchanges to the overall market trend.
The funding rate reflects the cost of perpetual futures positions. A strong positive rate can indicate a tilt towards long positions. A negative shift can occur due to an increase in short positions or the liquidation of existing positions. If spot demand increases, it could lead to a short squeeze.
Indicators to watch in the future include open interest and funding rates by major exchanges. Spot trading volume and the recovery of adjacent resistance levels are also important. If the funding rate remains neutral while the price rises, the leverage burden is limited. If the funding rate quickly surges into positive territory, the risk of a liquidation-driven correction increases.
*Disclaimer: This article is for investment reference only, and we are not responsible for any investment losses based on it. The content should be interpreted for informational purposes only.*
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