Bitfinex analysts say BTC may have reached a potential local bottom.
Data provided by Bitfinex shows that the funding rate of the BTC perpetual contract has become negative for the first time since hitting bottom on May 1.
Historically, periods of negative funding rates coupled with low short-term SOPR values ââ(a financial metric that measures the profits or losses realized by the wallets of a specific group of investors on a given day) typically mark the bottom of a price correction.
Analysts said: âThis may be seen as an increase in bearish sentiment, but also strengthens the view that BTC may be stabilizing or approaching a potential bottom as the balance of buying and selling pressure evolves. Negative indicators indicate heavy selling pressure or sellers Dominates the market, but can also indicate that the market is oversold. When this oversold condition coincides with a recovery in SOPR, it usually indicates that the market is bottoming."
Analysts at Secure Digital Markets said in their report: âThe RSI indicator shows that Bitcoin is oversold for the first time since August, just before the upward squeeze. For Bitcoin to gain further momentum, the price needs to break through $58,500. , a break above $60,500 would mark a return to bullish territory.â
Tyr Capital Chief Investment Officer Ed Hindi believes that the current pullback is temporary and insists that BTC prices will reach six figures by the end of the year. Ed Hindi said in a CNBC interview: âBitcoin is currently in correction territory as miners and governments sell off Bitcoin stocks, but we believe long-term investors and speculators will continue to buy on dips. We see no reason to change Bitcoinâs end-2024 outlook $100,000 goal.â