Bitcoin’s funding rate is increasing on exchanges such as DyDx and Deribit. This surge has raised concerns among market observers and traders, particularly those with a bullish outlook on the cryptocurrency market.
#Bitcoin's funding rate is rising on exchanges like #DyDx and #Deribit. To avoid history repeating itself after last week's top, those #bullish on #crypto want to see $BTC #FOMO staying low, with #shorts opening at the same (or higher) rate than longs. https://t.co/xlipAPHZPL pic.twitter.com/oD2qglaWvb
— Santiment (@santimentfeed) May 13, 2024
To avoid a repeat of last week’s peak, bullish traders are hoping to see FOMO (Fear of Missing Out) remain subdued. Ideally, the rate of short positions opening should match or exceed that of long positions. This balance is crucial to prevent a scenario where an overwhelming number of long positions could lead to a sudden market correction.
Key Resistance Level at $66,250
One of the most significant resistance levels for Bitcoin is at $66,250. Analysts believe that if Bitcoin manages to break past this critical threshold, it could pave the way for new all-time highs. This level is closely watched by traders as it represents a major milestone that could potentially trigger a significant upward movement in Bitcoin’s price.
The most significant resistance level for #Bitcoin is at $66,250. Once $BTC breaks past this level, it will be positioned for new all-time highs! pic.twitter.com/8ieiU86wfT
— Ali (@ali_charts) May 13, 2024
The current market conditions highlight the importance of closely monitoring funding rates and trader behavior. A balanced opening of short and long positions can contribute to a more stable market environment, reducing the risk of extreme volatility. As Bitcoin approaches the $66,250 resistance level, the cryptocurrency community remains cautiously optimistic about the potential for further gains.