The price of Bitcoins has made quite a revival in the last few weeks, asking questions about the sustainable development of this fresh stubborn momentum. It will turn out whether the flagship cryptocurrency sets the bull’s trap or justifies the claim for a novel high price of all time. However, the latest chain data suggest that the Bitcoin price may be up to the powerful trend at the beginning.
Is there a correlation between the BTC price and binance financing rates?
In the Quicktake post on the Cryptoquant platform, a beetroot chain analyst examined How can binance financing rates be used to analyze the bitcoin price trajectory in a low period. In the case of the context, the “financing rate” omits the periodic fee mentioned between traders on the market of derivative instruments (eternal Futures).
A positive financing rate indicates that long traders (investors with purchasing items) pay a fee to low traders (investors with sales items). This periodic fee trend signals the dissemination of stubborn moods on the cryptographic market.
On the other hand, low financing rates suggest that investors with low positions pay long traders on the derivative instrument market. This direction of the financing rate suggests that the market is dominated by low sellers.
According to Kesmeci, the in -depth assessment of Bitcoin financing indicators in the last 30 days has a clear correlation with a low -term price movement. When the financing rates became positive, the BTC price usually experienced a significant augment in the low period.
Source: CryptoQuant
The analyst in the chain emphasized two scenarios in the last month, in which the BTC price showed a powerful correlation with financing rates. First of all, Bitcoin financing indicators on Binance entered a positive territory and achieved powerful levels (0.0030 and more) between April 10 and April 22, with the price at the same time increased from USD 79,000 to USD 93,000.
In the second period – between May 6 and May 10, the financing rates once again entered a positive territory, and the price of Bitcoins increased from USD 95,000 to USD 103,000 at that time. According to Kesmeci, the Binance financing rate – the world’s largest stock exchange according to the trading volume – remain crucial for the BTC price trajectory.
Kesmeci came to the conclusion that the growth of the spot market, strengthened by positive financing indicators on the Futures contracts market, suggests a powerful low -term upward trend at the Bitcoin price. With a further stubborn rush it would be only a matter of time before the most essential cryptocurrency regains its current price in history and perhaps novel.
Bitcoin price at first glance
From this letter, the price of BTC is around USD 103,605, which reflects the 0.5% jump in the last 24 hours.
The price of BTC on the daily timeframe | Source: BTCUSDT chart on TradingView
Recommended photo from Istock, chart from TradingView
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