Categories: Crypto NewsNews

Bitcoin funding rates improving from last week

Published by
Nonhlanhla P Dube

After finally recovering from a month-long decline, Bitcoin funding rates fell below neutral two weeks ago. This sparked concerns about the market entering another downward trend. However, once the numbers for the previous week came in, this swiftly altered. This time, bitcoin funding rates are portraying a more positive image for the digital asset.

Funding Rates Reach Neutral

In comparison to prior weeks, bitcoin funding rates have been more positive in the last week. This is because it had maintained its positive at neutral for the entire seven days; funding rates had not dipped below neutral at any stage throughout the week. This is the first time since March that financing rates have maintained consistently above the negative level for an extended period of time.

A recovery in funding rates is always welcomed by the market, which is why last week’s day is still significant. In a market like this, where bitcoin is still unable to comfortably break above R381K, there needs to be a dramatic shift in both mood and the amount of money pumped into the field.

With financing rates returning to neutral, bitcoin is once again on the verge of reaching neutral, something that has eluded it for the majority of the year. The trend, which began in June, has now reached an acceptable level, but the end aim remains to find positive rates if bitcoin is to continue its bull run. Bitcoin is currently selling for below R381K.

Will Bitcoin Make a Comeback?

Bitcoin is still trading near R37.7K, which has surprisingly turned out to be a support level for the digital asset. This level is holding tentatively but needs a significant push to break out of it. With funding rates on the rise, perp traders may offer the necessary impetus.

The level of leverage in the bitcoin market remains high. This suggests that more traders are entering the digital asset space. However, it puts them in a precarious position in a circumstance where liquidations could build up quickly, particularly if the move falls below R364.5K. Nonetheless, the bullish indications are still robust, albeit slightly weaker than last week. Because the resistance at R381K is not as strong as bears would like, the next significant resistance is considerably above R389K. If bitcoin can continue to outperform the 50-day moving average, it is likely to rise above R397.6K once more.

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Nonhlanhla P Dube

Nonhlanhla P Dube is a senior news reporter at Rateweb. Nonhlanhla is a student of International Relations at the University of South Africa. She reports primarily on personal finance and economics. You can contact her directly by email at nonhlanhla@rateweb.co.za

Published by
Nonhlanhla P Dube
Tags: Bitcoin
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