📊Bitcoin financing rate has dropped sharply, is market activity cooling down?
Bitcoin's financing rate has plummeted recently, which is a bit panicking! Once the price drops, those important on-chain indicators also slump, which is annoying to watch. If this situation continues, the price of Bitcoin is estimated to go down all the way.
We all know that the upward trend of financing rates indicates that the demand in the futures market is strong and the price is likely to rise. But now the financing rate has dropped sharply, which means that everyone is not so confident in Bitcoin. At the same time, those traders have become cautious, and the demand in the derivatives market has also weakened. If there is no such momentum to push up, the upward trend of Bitcoin will be suspended.
When Bitcoin rose before, the financing rate rose quite sharply, but now it has begun to retreat from the $108,000 position, and the financing rate has also fallen. This means that traders' enthusiasm for the market has waned, capital is not so actively flowing in, and the bullish momentum is weak. It will be difficult for Bitcoin to continue to go up.
Moreover, the current financing rate situation reflects the market's hesitation. The key is that the key point of $108,000 has not been broken. If Bitcoin is unable to hold $90,000, the situation is worrying. After investors' confidence is frustrated, the selling pressure will increase sharply, and the price will most likely continue to fall to test the lower Fibonacci level and psychological threshold. On the contrary, if the financing rate can rebound with the increase in purchasing power, Bitcoin is expected to stabilize and resume its upward trend, and the market's bullish sentiment is also expected to rekindle.
In addition to the financing rate, the unrealized profit rate of Bitcoin chain traders is also declining, which is not good. Julio Moreno, head of research at CryptoQuant, said that Bitcoin prices rose so sharply before, and it is normal to fall now. However, traders believe that the actual support price is $88,000, and the price at that time was $93,000. If it continues to adjust, the profit space in this round will become smaller and smaller.
What do you think of the recent sharp decline in the financing rate in the Bitcoin market? Do you think the Bitcoin market is about to change, or is it just a temporary fluctuation? Leave your opinions and views in the comment area!
