Bitcoin “Looks Healthy” After 2 Months, Backs BTC To Rally Above $74,000
2024年4月12日 - 2:00AM
NEWSBTC
Bitcoin, one analyst notes on X, is looking healthy for the
first time since the coin soared to over $70,000, printing all-time
highs back in March 2024. The assessment is due to funding rates
dropping to within ordinary levels, an indicator that volatility is
also falling and moments of fear of missing out (FOMO) are
fading. Funding Rates At “Normal Levels” As FOMO Dissipates
In crypto perpetual trading, the funding rate is the fee exchanged
between market participants. These fees are market-determined and
are adjusted every eight hours or so. Depending on market
conditions, they can be positive or negative. However, they play a
critical role in determining momentum. Of note, bulls pay a fee to
bears When perpetual prices are higher than the spot price. This,
in turn, discourages buying in the perpetual market and
incentivizes buying into the spot, bringing prices closer.
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– Impact On Price Whenever prices rally, as has been the case since
the start of the year when Bitcoin has generally been in the green,
those who enter long have to pay sellers to keep prices from
deviating, as mentioned above. However, at spot rates, the
rate leveraged buyers are paying is slightly lower as FOMO drops.
Once prices rapidly expand, ideally above March 2024 highs, this
funding rate will likely increase to February and March 2024
levels. So far, Bitcoin is changing hands above $70,800 at spot
rates and within a bullish formation. Of note is that buyers are in
charge of reversing losses posted on April 8. Even so, for
the uptrend to remain, prices must break out above $72,500 and the
April 8 high on rising volume. BTC will likely float to over
$73,800 and enter price discovery in that case. Bitcoin Rises After
CPI Data In The United States, Institutions Pouring In? With FOMO
dissipating and “normalcy resuming,” the analyst said the coin is
now better positioned to soar higher, backed by organic momentum
generated from market participants. After dipping slightly on April
9, the coin rose following positive news about the Consumer Price
Index (CPI) in the United States. While the “hot” CPI pushed
other assets lower, Bitcoin prices bounced to spot levels. Experts
say the coin might benefit as risk-averse traders shift to
safe-haven coins to shield their value from raging inflation.
Related Reading: Crypto Expert Unveils Most Undervalued Altcoin
Right Now Beyond this, analysts expect demand for spot Bitcoin
exchange-traded funds (ETFs) to rise in the months ahead. As
institutions pour in, buying shares of spot BTC ETFs issued by
players like Fidelity, the demand for the underlying coin might
soar to fresh levels, lifting prices. Moreover, some analysts are
bullish, saying prices will benefit once GBTC stops offloading
coins. Feature image from DALLE, chart from TradingView
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