Key Takeaways
What is the market sentiment like right now?
The negative Funding Rates showed that market participants were in disbelief of a potential Bitcoin rally. A short squeeze could drive prices to $116k or even higher.
Is the current price bounce accompanied by high demand?
It was too early to tell, but the trading volume in recent hours has been above average. The weakened selling pressure over the past two days also helped.
Is the Bitcoin [BTC] correction over? Over the past 24 hours, Bitcoin has rallied 3.9%, and at the time of writing, it was exchanging hands at $111,057.
Its climb past the short-term resistance zone at $108k was a good start to the week, if the bulls can keep this form going.
Source: CryptoQuant
The market could be in disbelief of a potential recovery. In a post on CryptoQuant Insights, analyst Darkfost noted that the BTC Funding Rates on Binance were negative.
It was a sign that short sellers were still leading the market.
Usually, after such a swift correction, the market continues to harbor doubt that a recovery is possible. This phase of disbelief is currently visible with the negative Funding Rates.
Ironically, in the derivatives market, this disbelief can fuel recovery.
A price move higher forces short sellers to get liquidated or close their positions at a loss, and these m
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Author: Akashnath S
