Name Price24H (%)
Bitcoin (BTC)
$56,868.00
-1.29%
Ethereum (ETH)
$2,969.15
0.86%
Binance Coin (BNB)
$625.57
0.08%
Cardano (ADA)
$1.34
0.03%
Funding Rates Low After 10K Rally, What This Means For Bitco...
Bitcoin, News

Funding Rates Low After 10K Rally, What This Means For Bitcoin’s Price

Bitcoin has been sitting above a critical support zone during the weekend. At the time of writing, BTC trades at $56.662 with sideways movement in the daily chart. In the weekly chart, the first cryptocurrency by market cap has a 12.8% following a $10,000 rally from the higher zone in the $40,000 range.

Bitcoin BTC BTCUSD
BTC moving sideways in the daily chart. Source: BTCUSD Tradingview

The bullish sentiment appears to be making a comeback in the crypto market with many investors expecting new highs in the short term. In the meantime, BTC could consolidate at current levels with $54,000 as a critical support zone as there is a large concentration of investors that bought around these levels, as trader Byzantine General showed.

WhaleMap BTCUSD
Source: Whalemap via Byzantine General

During BTC’s climb towards the upper $50,000 range, CryptoQuant CEO Ki-Young Ju registered an increase in whale’s activity. According to Young Ju, “massive Bitcoin have transferred” across all exchange platforms. Possible due to OTC (Over-the-Counter) deals made by institutions still accumulating BTC. CryptoQuant CEO added:

Significant Coinbase Premium could indicate institutional investors in the United States are buying. A significant amount of $BTC moved to derivative exchanges from other exchanges, meaning whales might open a long position by using their BTC as collateral. This happened in the dip.

CryptoQuant BTCUSD
Source: CryptoQuant

Further data provided by analyst William Clemente shows an increase in stablecoin Tether (USDC) Total Transfer Volume to Exchanges. The last time the metric registered a spike, Tesla announced their Bitcoin purchase. The analyst believes that the demand for BTC in the market is rising and could contribute to more appreciation.

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In parallel, funding rates during BTC’s rally have remained relatively low. Therefore, and in spite of a rise in the whale’s activity, the analyst believes the rally has been driven organically by investors in the spot market. Clemente added: “Price is likely going much higher in the coming weeks”.

Bitcoin BTC BTCUSD
BTC funding rate low as of May 1st. Source: Glassnode via William Clemente

$55,000 As The New Bottom For Bitcoin’s Price

Trader Josh Rager is more conservative and expects BTC to test the weekly level at $59.979. If it holds it, BTC could see new highs, but until then “we’re just ranging as price goes” into that target, as the trader said.

Bitcoin BTC BTCUSD
Source: Josh Rager

If Bitcoin retakes a downtrend, $50,000 could be the new $10,000 for future corrections. Data provided by Glassnode via analyst Clemente indicates that 14.46% of BTC’s supply has been bought in the mid area of the $50,000 range.

This constitutes Bitcoin’s largest base of capital seems the cryptocurrency was around $6,000 and $11,000, as the analyst said adding the following:

Each bull-market forms a base of capital 2-3X above previous ATH, marking “the point of no return.” Would eye this as the next Bitcoin BTC BTCUSD

Source: Glassnode via William Clemente

Source: NewsBTC.com

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