The price of bitcoin has Made pretty recovery In recent weeks, questions about the sustainability of this freshly haus -like speed raise. It remains to be seen whether the flagship Cryptocurrency sets a bull trap, or it makes a legitimate requirement for a new high price. However, the latest information on the chain indicates that the Bitcoin Prize may be at the beginning of a strong upward trend.
Is there a correlation between BTC price and financing kits for Binance?
In a Quicktake post on the Cryptoquant platform, analysts on the chain Burak Kesmeci investigated How the financing rate at Binance can be used to analyze Bitcoin’s price track in the short term. For context, the metric “funding” measures the periodic fee exchanged between traders on derivatives (eternal futures).
A positive degree of financing indicates that the long retailers (investors with purchase appointments) pay a fee to short traders (investors with sales positions). This trend with the periodic fee signals the presence of a raisy feeling in the crypto market.
On the other hand, a Low fundamental funding Metric means that investors with short positions pay long traders in the derivative market. This financing rate suggests that the market is dominated by the short sellers.
According to Kesmeci, an in-depth evaluation of Binance’s Bitcoin financing levels in the last 30 days shows a clear correlation with the short-term price movement. When financing levels became positive, the price of BTC usually increased remarkable increases in the short term.
Source: CryptoQuant
The Analysts on the chain marked Two scenarios in the last month where the price of BTC showed a strong correlation with the level of financing. First, Bitcoin financing levels at Binance entered a positive territory and reached strong levels (0.0030 and higher) between April 10 and April 22, with the price at the same time rose from $ 79,000 to $ 93,000.
During the second period – between May 6 and 10, the level of financing was again included in a positive territory, with the Bitcoin price that jumped from $ 95,000 to $ 103,000 during this time. According to Kesmeci, the financing rate at Binance – the world’s largest exchange through trade volume – remains crucial for the BTC price track.
Kesmecip concluded that Rise in the spot marketReinforced by positive financing rates in the futures market, suggests a strong short-term trend for the Bitcoin Prize. With additional haussearted momentum, it would only be a matter of time before the main Cryptocurrency recovers its current price all the time and may create a new one.
Bitcoin price
From this writing, the price of BTC amounts to about $ 103,605, which reflects a 0.5% jump over the past 24 hours.
The price of BTC on the daily timeframe | Source: BTCUSDT chart on TradingView
Image from iStock, chart from tradingview
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