Over the past day, Bitcoin (BTC) has started to slump. The cryptocurrency, as of the time of writing this, is trading 2% down on the day, changing hands at $9,200.
Despite this drawdown, a key indicator suggests that bulls may soon gain momentum once again. CryptoHamster noted that the BitMEX funding rate and premium index has become negative on short-term time frames. The last time this was seen, Bitcoin rallied higher by some 5% in the hours that followed.
The idea here is that BitMEX’s funding and premium index often acts as an indicator of which way traders are leaning. While a negative index means that investors are expecting for Bitcoin to fall, the cryptocurrency market has been known to move against the majority, hence the potential for a 5% rally back to $9,600 or so.
This isn’t the only sign that Bitcoin may be readying to see some gains. Bitcoin recently held its 200-day moving average, a signal of growing bullish momentum. And, an analyst noted that many of the drops seen over the past two days have been quickly bought up, implying that investors are anticipation upside. Read More...