• About Us
  • Privacy Policy
  • Contact Us
  • Home
  • Bitcoin
  • Ethereum
  • Cryptocurrency
    • Altcoin
    • Litecoin
  • Blockchain
  • Regulation
  • Market
  • Prices
  • ICO
No Result
View All Result
Cryptounfold
No Result
View All Result
Home Bitcoin

Bitcoin Could See a Massive Squeeze as Funding Rates Flip “Extremely Negative”

by admin
October 7, 2020
in Bitcoin
0
0
SHARES
5
VIEWS
Share on FacebookShare on Twitter


Related Posts

Bitcoin Trading Volume Sinks Down Almost 60% In 9 Days

North Korean Hackers Suspected Of Perpetrating $100 Million Harmony Attack

3 Lessons From The Oslo Freedom Forum: Why BTC? Nabourema, Likhachevskiy, Diop

National Agency of Prospective Projects (NAPP) In Uzbekistan Green Lights BTC Miners


  • Bitcoin’s price action has been lackluster as of late, providing investors with few insights into the cryptocurrency’s near-term outlook as it consolidates
  • Although from a technical perspective, it remains unclear as to where it might trend in the near-term, there are a few factors that may provide investors with some guidance
  • One such factor that could have some influence over the digital asset is its funding rates, which have flipped negative throughout the past few weeks
  • Extremely negative funding is oftentimes viewed as a counter-indicator, suggesting that significant upside is imminent in the days and weeks ahead
  • One analyst is expecting Bitcoin to see an intense short-squeeze as bulls liquidate overzealous short-positions

Bitcoin and the entire crypto market have been caught within the throes of a consolidation phase. This has done little to offer insight into where the cryptocurrency market trend in the days and weeks ahead.

BTC’s trading range, which was first formed a couple of weeks ago, exists between $10,200 and $11,200. Both of these levels have been holding strong, with bulls and bears being unable to make any meaningful advances towards them.

Where the benchmark cryptocurrency trends next may be heavily influenced by its negative funding rates.

At the moment, it is quite expensive to sit within short positions due to the high demand from traders to have sell-side positioning.

One analyst thinks this will catalyze an intense “short squeeze.”

Bitcoin Consolidates as Traders Flip Short 

At the time of writing, Bitcoin is trading sideways at its current price of $10,630. This is where it has been trading for the past few hours.

Despite not having any clear momentum, demand for short positions is incredibly high, which has caused funding rates to dive into extremely negative territory.

This means it is costly to sit within a short position, and profitable, by default, to have long exposure.

Analyst: Negative Funding to Spark a Short Squeeze

One trader noted that the massive number of open short positions could open the gates for Bitcoin to see a notable short squeeze in the near-term.

He notes that although he is sitting out of the chop, he wouldn’t be surprised to see Bitcoin’s price rally higher in the near-term.

“This BTC funding… About as high as I can ever remember. Wouldn’t be surprised to see a pop up to squeeze overzealous shorts at HTF support. Personally still sitting out of the chop,” he said.

Where the market trends in the coming days will depend solely on Bitcoin. As such, a short squeeze that can potentially help shift its trend into bull’s favor could also allow altcoins to see explosive momentum.

Featured image from Unsplash.
Pricing data from TradingView.





Source link

Tags: BitcoinExtremelyflipFundingmassiveNegativeRatesSqueeze

Popular

Press Release

A Multi-Currency Wallet For All Your Crypto Needs

by admin
June 29, 2022
0

CCTIP: A Multi-Currency Wallet For All Your Crypto Needs KOWLOON CITY, HONG KONG Tue Jun 28 2022 03:45:00 GMT-0400 (EDT)...

Read more

Fat Cat Killer ($KILLER) is now listed on Bitmart!

June 28, 2022

DeFi Skeptic Aspires to Make the Decentralized World Better Through Increased Transparency and Information.

June 28, 2022

Anchorage Digital to Introduce Ether Staking for Institutions as Move to PoS Approaches

June 29, 2022

Will emergence of this unique young Crypto star bring new hope for the Crypto world.

June 28, 2022

About

We publish a comprehensive news feed covering all news relevant to the crypto user, covering main industry news, politics and regulation as well as consumer-level “news you can use” (practical stuff), including handy DIY tips, links to useful tools, unbiased reviews and opinions revolving around cryptocurrency. Simple logic and real-world examples are preferred before technical jargon and personal rants.

Follow us

Categories

  • Altcoin
  • Bitcoin
  • Blockchain
  • Cryptocurrency
  • Ethereum
  • Litecoin
  • Market
  • Press Release
  • Regulation
  • Uncategorized

Recent Posts

  • Do Rate Hikes Matter? Bitcoin Traders Learn How Fed Moves Markets in Twitter Era
  • Bitcoin and Stocks Drop; Analysts See Risk of Further Downside
  • New York Environmental Regulators Deny Greenidge’s Power Plant Permit
  • CoinFLEX Withdrawals Remain Halted as Recovery Token Talks Continue
  • About Us
  • Privacy Policy
  • Contact Us

© 2020 cryptounfold.org

No Result
View All Result
  • Home
  • Bitcoin
  • Ethereum
  • Cryptocurrency
    • Altcoin
    • Litecoin
  • Blockchain
  • Regulation
  • Market
  • Prices
  • ICO

© 2020 cryptounfold.org

  • MMS Cash TokenMMS Cash Token(MCASH)$1.000.00%
  • bitcoinBitcoin(BTC)$49,095.002.28%
  • ethereumEthereum(ETH)$3,384.05-0.62%
  • HEXHEX(HEX)$0.1290085.45%
  • cardanoCardano(ADA)$2.18-2.77%
  • tetherTether(USDT)$1.00-0.27%
  • binancecoinBinance Coin(BNB)$425.46-0.83%
  • SolanaSolana(SOL)$166.52-1.81%
  • rippleXRP(XRP)$1.04-1.73%
  • usd-coinUSD Coin(USDC)$1.000.74%