While the Bitcoin price has slowed over the past couple of days, most indicators point to the market leader being in bullish territory, at least in the short term. For instance, a specific on-chain metric suggests the BTC price is on the verge of another leg up.
Is A Short Squeeze Imminent For BTC?The relevant indicator here is the 50-day Simple Moving Average of Bitcoin’s Funding Rates on Binance, the world’s largest cryptocurrency exchange by trading volume. As highlighted by CryptoOnchain, this metric, which measures the periodic fee exchanged between traders in a cryptocurrency’s derivatives market, has fallen to its most negative level since the post-COVID crash in April 2020.
Typically, negative funding rates imply that short traders (investors with sell positions) are paying a fee to long traders (investors with buy positions), as they bet against the price of the cryptocurrency (Bitcoin, in this case). “Prolonged negative funding rates at this magnitude indicate absolute dominance of bearish sentiment and aggressive short-selling,” CryptoOnchain said in their Quicktake post.
Bitcoin Price At A GlanceAs of this writing, the price of BTC is around $80,132, with no significant change over the past 24 hours. According to CoinGecko data, the premier cryptocurrency is up by more than 2% in the past seven days.
