A quant has explained how the Bitcoin funding rate (72 hour) may be able to correctly signal tops and bottoms in the price of the crypto.
Bitcoin Funding Rate May Be Able To Indicate Tops And Bottoms In The Market
As explained by an analyst in a CryptoQuant post, the 72-hour version of the funding rate looks to have been effective at pointing out tops and bottoms in the BTC market.
The “funding rate” is the periodic payment that Bitcoin futures traders (either long or short) have to make between each other.
When the value of this metric is negative, it means shorts are paying a premium to the longs to keep their positions right now.
Such values show there are more shorts in the futures market at the moment, and the majority sentiment is bearish.
On the other hand, positive values of the indicator imply longs are dominating the shorts currently. Naturally, this trend means the overall sentiment is bullish in the Bitcoin market curr ..
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