The bears regained control over the cryptocurrency after bitcoin rose to $ 10,600 late on Saturday evening. Now, as sellers suddenly enter the market, BTC is trading at $ 10,300 and $ 10,200. until it fell.
This was a deviation from the expectations analysts had for Bitcoin just hours before the move. Many thought that the move above $ 10,500 after the changing days would drive BTC to $ 11,000.
While this didn't result, there are signs that the ongoing fix is too aggressive. So, there is a high probability that Bitcoin will bounce from here.
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Bitcoin May Bounce Soon, Suggests Derivative Data
Apparently derivatives traders led Bitcoin on Sunday morning.
According to ByBt, A crypto derivative tracking site, most of the Bitcoin margin exchanges currently have negative funding rates. The funding rate is the fee the derivative pays over a long period of time to normalize the price of the underlying asset; When the funding rate is negative, it indicates that the shorts are pulling the price down because the derivative is trading below the spot market.
BitMEX currently has a negative funding rate of 0.0328% in eight hours, well below the baseline of 0.01% at eight hours. Other leading markets such as OKEx and Huobi are also currently negative.
In particular, Ethereum's futures markets also print negative funding rates, something that is only seen when derivatives sellers are exerting extremely heavy pressure.
Negative financing rates are often seen before Bitcoin takes off. Likewise, extremely positive financing rates are often seen before a Bitcoin correction.
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All Eyes on Old Markets
The bears may increase the downward pressure if old markets such as the stock markets and the currency market open in red in the coming hours.
As seen in the past few weeks, the decline of old markets has a negative impact on the price of Bitcoin and cryptocurrencies.
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Featured Image from Shutterstock Price tags: xbtusd, btcusd, btcusdt Charts from TradingView.com Here's Why Bitcoin Is Poised to Bounce After Plunging $300