Bitcoin has suffered in the last few weeks. Different funding rates have been responding to this price change. Instead of seeing funding rates rise as the price fell, they have been muted. They even began to decrease, in particular during the week. The price of the digital asset is starting to rise, but this trend is slowly changing.
Recovery of Funding Rates
Bitcoin funding rates fell to their lowest point last month, and that was when bitcoin’s price had been lower. The crash continued, and long traders decided to keep their distance from the market. Now, long traders are moving into the market.
Altcoins take the lead as Bitcoin struggles to hold above $20,000| Altcoins Take The Lead As Bitcoin Struggles To Hold Above $20,000
Over the past week, funding rates on Binance and Bybit cryptocurrency exchanges have shown a positive recovery trend. It is not yet at neutral but it is getting close to recovering this level. Bybit saw its bitcoin perpetuals rise to 0.01% during the weekend. Although Binance is still in negative territory, the total return of both the bitcoin perpetuals and the average perps trade has been 0.003%.
The long-term traders have woken up from their sleep. The rapid change from negative to positive in growth rates over the past few years is a sign of this renewed energy.
Source: Arcane Research| Source: Arcane Research
It is not clear if the current recovery trend will persist or if it is temporary. But, it could be that the current bitcoin price rebound is not a temporary one.
Bitcoin Bouncing Back
It has been a hard-hitting June and July, but July holds better news for bitcoin. It hasn’t been as great as investors hoped, but bitcoin is holding firm to its $20,000 support level than it was a few weeks back.
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The digital asset recovered some of its losses and is now close to testing $21,000 as resistance. While it remains below the technical level, there is a return to positive sentiment that suggests more recovery.
Source: BTCUSD tradingview.com| Source: BTCUSD on TradingView.com
It is not unlikely that bitcoin will surpass $22,500 as bitcoin funding rates rise and longer traders get more involved. It is unlikely that bitcoin will reach this level, but it could happen if the market continues to suffer from the selling fatigue.
Bitcoin trades at $20,860 as of the writing. Bitcoin is still the most popular cryptocurrency, with a market capitalization of $398 million.
Featured image taken from Verve Times. Arcane Research charts and TradingView.com charts.
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