Earlier this week, Bitcoin exceeded a historically important price point of $ 11,500. The leading cryptocurrency dropped by about 7% to $ 10,600 within 24 hours following the highest level.
After meeting between $ 10,800 and $ 11,200, Bitcoin once again rises. A few minutes ago, BTC pierced $ 11,400 for the first time according to the summits mentioned above.
Chart of BTC's price action over the past few days from TradingView.com
While some are afraid of a rejection similar to Bitcoin encountered earlier this week, derivative data shows that BTC is now in a healthier position. This means that BTC can surpass $ 11,500 for the first time in about a year.
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Bitcoin Derivatives “Healthier” BTC compared to Elapsed Time $ 11,500
While Bitcoin was meeting earlier this week, one problem many analysts were discussing was the high funding rates paid by Bitcoin futures owners. Financing is the rate at which long positions pay short positions in a permanent swap market to normalize the price of the contract to the price of the underlying contract.
The high financing rates show that a constant swap buyers are overextended compared to bears. As Bitcoin does on Monday and Tuesday, high financing rates are often seen before the price of the contract is correct.
But things have changed since Monday and Tuesday. Funding rates compared to control panel shared By a trader, funding rates are now normalizing to basic levels around 0.01% every eight hours.
Table of BTC's funding rates across top perpetual swap futures markets. Data shared by Byzantine General (@Byzgeneral on Twitter).
Most permanent swap markets like Binance and BitMEX and ByBit have reached levels that suggest buyers are just a little overwhelming bears.
This indicates that Bitcoin has a place to move higher.
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Is $ 12,000 Close?
As long as Bitcoin goes above $ 11,400 and $ 11,500, analysts will be able to $ 12,000 thinks that moving to is close.
Kelvin Koh, partner of The Spartan Group and ex-partner of Goldman Sachs, wrote on July 31:
“If BTC breaks the resistance at $ 11.4K $, it will never be $ 12K; We're going over. In the short term, it will remove the wind from the realms again. "
This was repeated by other analysts. As reported by NewsBTC, the same trader estimating that Bitcoin will drop to $ 3,200 in 2018:
“$ Btc merges above a significant breakout level. price contraction, volume decrease, rise seems, will continue soon. "
He thinks BTC will hit $ 12,000 soon.
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Featured Image from Shutterstock Price tags: xbtusd, btcusd, btcusdt Charts from TradingView.com As BTC Pushes $11,500 Top, Funding Rates Drop: Why This Is Bullish