Bitcoin Faces Critical resistance as Funding Rates Turn Positive
Bitcoin’s price is nearing a crucial resistance level, sparking questions about the sustainability of its recent surge. The cryptocurrency is currently trading around $96,250 to $97,800, just shy of $98,000. This level is significant as it aligns with several technical barriers, including a descending trendline and a Fibonacci retracement.
Concurrently,funding rates on major exchanges have become positive. this indicates that long positions are increasing in perpetual futures markets. But what are funding rates? In simple terms, they are periodic payments between traders based on the difference between futures and spot prices. Positive funding means long traders pay short traders, signaling bullish sentiment.
While this positive funding suggests optimism, it coudl also signal overleveraging. If the market lacks strong spot demand or volume, a pullback may occur. Traders should be cautious as Bitcoin tests this pivotal level.
Key points to watch:
- Current Price: $96,250 – $97,800
- Funding Rates: Positive,indicating more long positions
- Price Structure: Short squeeze pushing BTC into a range with previous bearish blocks
If Bitcoin can hold above $98,000 with solid volume,it could surge to $100,000. However, failing to break this resistance could lead to a rapid decline. Monitoring funding rates and volume will be crucial in determining the next move.
For more insights, check out CryptoQuant for detailed funding rate data.
