Bitcoin’s recent price action has done tremendous damage to the bullish market structure that the cryptocurrency was able to form throughout the past couple of months, with many analysts now noting that the crypto could be poised for significantly further downside.
One top analyst is now noting that one technical indicator that spells trouble for where the benchmark cryptocurrency is going next is its funding rate on major margin trading platforms.
If BTC begins a notable near-term downtrend, it is highly likely that this will send shockwaves throughout the aggregated crypto market, leading many major altcoins that have seen some intense bullishness to post massive losses.
Bitcoin’s Funding Rate Spells Trouble for Where the Crypto is Heading Next
This past Sunday, just minutes after Bitcoin’s weekly close, the crypto rallied all the way up to highs of $10,000 before finding a significant amount of resistance that halted its uptrend and sparked a notable near-term selloff.
One byproduct of this bearishness is the fact that Bitcoin’s funding rate for long positions on major margin trading platforms is incredibly high at the moment, which is not a bullish sign. Read More...