Bitcoin has endured a volatile and bearish week, marked by extreme price swings and uncertainty. Last Monday, the cryptocurrency experienced a sharp drop of over 9% in less than 24 hours, only to recover 11% a few hours later, showcasing the unpredictability of the market. Despite the rebound, Bitcoin’s price action remains under pressure, with bulls struggling to reclaim the $100K mark. Over the past few days, BTC has consistently closed around the $96,500 level, signaling indecision and the absence of a clear trend.
Adding to the cautious sentiment, key metrics shared by crypto expert Axel Adler highlight a significant development. According to Adler, yesterday, the average funding rate across the three top exchanges dropped to zero.
This metric, which tracks the cost of holding leveraged positions in the futures market, is often seen as a barometer of speculative activity. A drop to zero suggests that speculative appetite has waned, with neither bullish nor bearish positions dominating the market. However, Adler notes that In this cycle, every such occurrence has led to a “macro bull rally.”
As Bitcoin consolidates below $100K, investors are left wondering whether the current phase is a pause before a breakout or the precursor to a deeper correction. The coming days will be pivotal in determining the short-term direction for the world’s largest cryptocurrency.
Bitcoin Prepares For A Move As Speculation Cools Off
Bitcoin continues to grapple with massive volatility, fluctuating between its $109K all-time high and the $90K range lows. This tumultuous price action has left market sentiment deeply divided, with uncertainty surrounding Bitcoin’s short-term trajectory. While some investors fear a deeper correction, others believe the current consolidation is a healthy pause before another rally.
Top analyst Axel Adler recently shared key CryptoQuant data on X, offering insights into the current market dynamics. According to Adler, yesterday, the average funding rate across the three top exchanges dropped to zero. Historically, this metric has signaled significant market shifts. In this cycle, every instance of the funding rate dropping to zero ha
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Author: Sebastian Villafuerte
