Funding Rates Return To Neutral
The bitcoin funding rates for the last week have been more optimistic compared to previous weeks. This is because it had continued to maintain its positive at neutral for the whole seven days; there was not a single point in the week that funding rates had actually fallen below neutral. This is the first time since March that the funding rates have consistently remained above the negative level for a while week. A recovery in funding rates is always a welcome change for the market, this is why last week’s day remains important. With a market such as this, where bitcoin continues to struggle to comfortably break above $23,000, there needs to be a significant change in not only sentiment but in the amount of money being injected into the space.BTC funding rates return to neutral | Source:With funding rates recovering to neutral, it once more puts it on a path towards becoming neutral, something that has eluded bitcoin for most of the year so far. The trend, which had started in June, has now reached an acceptable point, but the end game remains for finding rates to turn positive if bitcoin is to continue on a bull rally.
BTC trading below $23,000 | Source:
Will Bitcoin Recover?
Bitcoin is still trending at $22,800, which has surprisingly become a support level for the digital asset. This level continues to hold tentatively but needs a big push to rise out of this level. With funding rates recovering, perp traders may likely provide that needed push.Related Reading: Why Bitcoin Investors Should Pay Attention To The Macro Environment
As for the leverage in the bitcoin market, it remains elevated. This means that more traders are opening positions in the digital asset. But it also puts them in a precarious position in a situation where liquidations could pile up quickly, especially with a move below $22,000.Featured image from The Economic Times, charts from Arcane Reseach and TradingView.com
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