Bitcoin Futures Market Overheating Again, Volatile Storm Ahead?
Data shows the Bitcoin futures market is starting to overheat again, which could lead to higher asset price volatility. Bitcoin Open Interest Has Been Climbing Recently As an analyst in a CryptoQuant Quicktake post explained, the open interest has seen some rise during the past month. The “open interest” is an indicator measuring the total […]
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The bitcoin perpetual futures "funding rate" has shot up, suggesting the market may be overleveraged to the bullish side.
Here’s what futures market data could suggest about whether this latest Bitcoin recovery will be a dead-cat bounce or not. Bitcoin Futures Market Shows No Signs Of Overheating So Far As explained by an analyst in a CryptoQuant Quicktake post, the BTC funding rate has stabilized around a relatively low value recently. The “funding rate” […]
The Binance Futures funding rate overtook Deribit on Dec. 18, which has historically led to Bitcoin to consolidate or pull back. The Bitcoin (BTC) futures funding rate on Binance Futures overtook Deribit on Dec.18, according to data from CryptoQuant. Historically, when this happened, the dominant cryptocurrency saw a local top or consolidation.The funding rate of major cryptocurrencies, including Bitcoin and Ether (ETH), rose considerably in the past 48 hours. This typically indicates that the futures market is overheating, which raises the probability of a pullback.Binance Funding vs.....
Bitcoin is rallying as buyers in the U.S. continue to drive the price up, but signs of overheating are emerging in Asia. Bitcoin (BTC) is continuing to rise to new heights above $35,000 on Wednesday as U.S. buyers on Coinbase further drive up the price. But the BTC futures market’s funding rate is also surging alongside futures open interest.The combination of a high funding rate, whales in Asia selling and a record-high futures market open interest raises the chances of a short-term correction.BTC/USDT daily candles chart (Binance). Source: TradingView.comWhat’s more likely, a correction....
The price of Bitcoin abruptly dropped over 3% in under an hour after surging to $13,350, but its high time frame log charts remain highly optimistic. Three factors likely triggered a quick decline in the price of Bitcoin (BTC) on Oct. 25. First, traders pinpoint the $13,300 to $13,500 area as a major resistance range. Second, futures and options markets are neutralizing. Third, weekend trading is seemingly amplifying volatility.The $13,300-$13,500 range is a key resistance area for Bitcoin in the short termBefore the sudden price drop occurred, BTC soared from $13,127 to $13,350. The....