The Bitcoin 72-Hour MA Funding Rates Pattern That May Kick Off Uptrends
As explained by an analyst in a CryptoQuant , the price has started rising recently whenever the metric has been near zero inside the negative zone. The “funding rate” is an indicator that measures the periodic fee that traders on the Bitcoin futures market are currently exchanging with each other.
When the value of this metric is negative, it means the short contract holders are currently paying a premium to the long holders in order to hold onto their positions. Such a trend suggests that bearish sentiment is more dominant in the market right now.
Looks like the 72-hour MA value of the metric has been positive in recent days | Source:
As you can see in the above graph, the quant has marked the relevant portions of the trend for the 72-hour MA Bitcoin funding rates. It seems like there have been a few instances during the last few months where the indicator has just turned negative (that is, still near the zero mark) and the price of the cryptocurrency has followed up by catching some upwards momentum shortly after.
While the left and right instances in the chart had the metric coming back inside the positive zone not too long after forming this pattern, the middle occurrence saw it go much deeper inside the negative territory first, and it was only after the initial leg up in the price that the funding rate became positive again. Based on this, it seems like a neutral to a negative value of the 72-hour MA Bitcoin funding has provided the proper ground for the price to rally during these last few months.BTC Price
At the time of writing, Bitcoin is trading around $28,600, down 6% in the last week.The value of the asset seems to have sharply gone down in recent days | Source: