In a recent post on the social media platform X, CryptoQuant author Axel Adler Jr. drew attention to an interesting trend in Bitcoin’s funding rates. For the past 413 days, the average 30-day moving average (30DMA) Funding Rate has remained positive. This extended period of positivity, with the current rate at 0.006 and reaching a peak of 0.03 this year, indicates a sustained bullish sentiment among traders. Adler Jr. suggests that traders consider switching to “spot mode,” indicating a strategic shift to take advantage of potential market movements.
Despite the encouraging funding rates, Bitcoin, the leading cryptocurrency, continues to face challenges in breaking through critical resistance levels. Currently hovering around the $69,000 mark, Bitcoin has experienced a slight decline of 0.1% in the past 24 hours. However, it has seen a modest increase of 2.8% over the past week, with its current trading price at $68,483. This struggle at a crucial resistance point is a common occurrence that tests the resilience and strategies of crypto traders and investors.
Axel Adler Jr.’s report not only highlights the resilience of Bitcoin and other cryptocurrencies in maintaining positive funding rates, but also emphasizes the cautious optimism that pervades the crypto market. With the average Funding Rate remaining in positive territory for over a year (413 days), currently at 0.006 and reaching a peak of 0.03 this year, traders are advised to switch to spot trading.
As traders and investors navigate these uncertain waters, the suggestion to switch to spot trading could be a strategic move to take advantage of anticipated bullish behavior without the higher risks associated with leverage in derivatives trading. This shift in strategy has the potential to lead to significant gains for savvy traders who can accurately time their entries and exits.
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