🚀🚀🚀 #Bitcoin futures markets signal ‘prime buying’ opportunity soon
According to on-chain analytics firm #CryptoQuant , record-long positive Bitcoin futures funding rates are signaling "strong #bullish sentiment," although this optimism may precede price corrections, potentially offering prime buying opportunities for investors.
The Bitcoin futures funding rates represent periodic payments exchanged between short and long traders, based on the disparity between the price of the perpetual futures contract and the spot price of BTC. When Bitcoin futures prices exceed spot prices, long traders pay shorts the funding rate, while shorts pay longs if futures prices fall below spot prices.
However, CryptoQuant analyst 'Crypto SunMoon' cautions that such heightened optimism historically precedes price corrections. In such cases, a subsequent drop may present an opportune moment for investors to buy.
Another CryptoQuant analyst, 'Maartunn,' has noted a rising Coinbase Premium, suggesting active Bitcoin buying by U.S. institutions. The Coinbase Premium reflects the price difference between Coinbase and global exchanges.
Earlier this week, crypto derivatives tooling provider Greeks Live commented that Bitcoin's ongoing decline has significantly impacted the crypto market, leading to panic and declining futures premium levels.
Bitcoin has experienced a roughly 9% decline over the past week, reaching a low just below $65,000 on April 2. It currently stands 10.5% below its March 14 all-time high of $73,738, with potential for further decline, as suggested by IG market analyst Tony Sycamore.
Sycamore predicts a drop to support levels around $60,000, or possibly lower, suggesting that Tuesday's sell-off increases the likelihood of another downward leg for Bitcoin before resuming its uptrend toward $80,000.
Source - cointelegraph.com
