I was thinking lately, the negative funding rate might have pushed some folks to buy Bitcoin a few weeks ago. Some traders take advantage of that to open buy positions, making a little from the funding even if the percentages are low. But hey, high use isn't ideal, right? Still, with Bitcoin's price going up, many are cashing in.
Yeah, I mean, whales love to mess with retail traders too. Funding rates have been low or zero for weeks, which isn't great for altcoins. But maybe now people are starting to look for breakouts? Especially with the news about Kevin Warsh and the Fed... it’s a wild ride! We need Bitcoin to stick above 80k and get bullish again, haha.
The Fear & Greed Index is pretty balanced right now, plus positive funding rates are a good sign. But if Bitcoin gets above 85k and stays there, who knows how high it could go? Just remember, we’re still dealing with a bear market. Funding rates are only part of the story they don’t capture the whole cycle since they’re tied to such short-term transactions.
I saw that too, the order heat map shows long positions piling up around 74.7k, like 3.4 billion dollars. If Bitcoin drops to 70k, that number could skyrocket to 11 billion in 90 days! Everyone seems focused on liquidity instead of chasing prices over 80k. But with how crazy the market is now, especially with geopolitical tensions, anything can happen.
The heat map of orders on exchanges shows that the total value of long positions opened near the $74,700 mark is $3.4 billion.
This figure will rise to $11 billion if bitcoin drops to $70,000 during the ninety-day liquidation period. Taken together, the positioning data indicates that traders are prioritizing deeper pools of liquidity rather than chasing higher prices above the $80,000 mark.
But then again, the market is too volatile right now. Much will depend on actions in the Middle East. And, of course, the traditional market itself is under serious inflationary pressure.