BTC USDT Heading towards TP
Bitcoin has surged to $71,000, marking the highest price in the past two months, accompanied by a stable funding rate indicating positive signals.
According to an analyst’s explanation in a CryptoQuant Quicktake post, BTC’s funding rate has remained relatively low recently. The “funding rate” refers to an indicator that tracks the periodic fees traders on the derivatives market are paying each other.
When this metric is positive, it means that long position holders are paying higher fees to short sellers to maintain their positions. Such a trend indicates a generally bullish sentiment in the market. Conversely, a negative value of this indicator suggests that short sellers dominate the market, indicating a bearish sentiment among derivative users. Now, here is a chart displaying the data on Bitcoin’s funding rate, along with its 7-day simple moving average (SMA) over the past year.
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