Binance Funding Remains Negative, Providing Rocket Fuel for Bitcoin
- Bitcoin’s short-term trend has grown somewhat unclear as of late, with the cryptocurrency being unable to extend its momentum past $13,800
- This level has historical significance, as it is where BTC’s uptrend stalled back in the summer of 2019 when it rallied
- The sharp rise in the US Dollar’s value that took place yesterday may have been what sparked this movement
- Despite it now consolidating at just above $13,000 as bulls and bears reach an impasse, one analyst is pointing to an interesting trend in Binance that is bullish
- He notes that funding rates on the platform remain negative, pointing to a “ridiculously bearish” sentiment that could help fuel a BTC rally
Bitcoin and the entire crypto market are seeing somewhat lackluster price action today, marking an extension of the consolidation phase seen throughout the day yesterday.
This sideways trading has come about close on the heels of the recent rejection at $13,800 that struck a blow to Bitcoin’s massive momentum.
Despite this rejection’s overt bearishness, an extremely negative sentiment amongst traders indicates that it could still be poised to see another push higher.
One analyst points to funding rates on Binance as a reliable sentiment indicator, noting that he is expecting upside.
Bitcoin Trades Around $13,000 as Momentum Stalls
At the time of writing, Bitcoin is trading down just under 1% at its current price of $13,150. This is around where it has been trading throughout the past 24-hours.
Yesterday, bears did spark a move down to the cryptocurrency’s critical support at $12,800, but the buying pressure here was intense and helped slow its descent.
As long as bulls continue defending against a drop below $13,000, then upside could be imminent in the near-term.
This Trend on Binance Bodes Well for BTC
One trader recently pointed to negative funding on Binance as a positive development for Bitcoin, noting that this indicates investor sentiment is widely bearish despite the recent push higher.
He also adds that those shorting Bitcoin’s strength as “asking to get rekt” – adding that upside is likely imminent.
“Binance funding being negative is a pretty big deal. Just sayin. A bunch of plebs are gonna get their lunch money taken away soon… When funding is negative on USDT collateral perps people are basically selling BTC they don’t own –> ridiculous bearish sentiment (people asking to get rekt).”
Image Courtesy of Byzantine General.
These mounting short positions could act as fuel for a move higher in the days and weeks ahead.
Featured image from Unsplash. BTCUSD pricing data from TradingView.