Number Of Bitcoin Bulls Increases As Funding Rate Shows Steady Growth – Details
October 24 2024 - 10:30AM
NEWSBTC
Bitcoin has rebounded strongly from the $65,000 mark after a 6% dip
from Monday’s high of around $69,500. Despite the recent pullback,
BTC remains in a bullish trend that has been in place since early
September. This rebound shows resilience, helping maintain the
bullish market structure. Key data from CryptoQuant reveals
that the average funding rate has steadily grown since September,
indicating that bullish sentiment is increasing as more traders
actively engage in the market. Related Reading: Solana Stays Strong
Despite BTC Drop – $176 Next? The coming two weeks will be pivotal
for Bitcoin as it approaches March’s all-time high. Investors and
analysts closely watch price movements as BTC builds momentum
toward breaking key resistance levels. If the bullish trend
continues, Bitcoin could be poised for another significant rally,
with the potential to set new highs shortly. However, any failure
to hold current levels could bring renewed volatility. Bitcoin
Showing Strength Despite a recent dip, Bitcoin remains strong above
key demand levels, maintaining the overall bullish structure.
Analysts and investors are closely monitoring the price action for
confirmation that the current phase is simply a bullish
consolidation before the next leg up. CryptoQuant analyst
Axel Adler shared data on X, highlighting the BTC futures perpetual
funding rate, which has shown steady growth since Bitcoin reached
the $60,000 level. This indicates a growing number of bulls
entering the market, with optimism rising as the price pushes
higher. Adler suggested that bullish momentum will likely continue
as long as this funding rate increases, reinforcing that BTC is in
a healthy consolidation phase. However, this doesn’t guarantee an
immediate breakout. There is still a significant chance that
Bitcoin may trade sideways over the next few days. Sideways price
action could be essential for building liquidity, allowing the
market to gather strength for a larger move. Related Reading:
Dogecoin Breaks Above $0.12 Level – Time For DOGE To Catch Up?
While the market sentiment remains optimistic, especially with the
ongoing increase in bullish activity, investors should prepare for
potential fluctuations. The next major price action could go in
either direction, but the steady support above key levels is a
positive indicator for those betting on further upside in Bitcoin’s
price. BTC Holding Above Key Demand Bitcoin is holding strong
above the $66,000 level after finding support around $65,000.
Currently trading at $67,100, the market seems to be in a
consolidation phase, and it may take some time before a breakout
above the crucial $70,000 level. For the bulls to maintain
momentum, it’s essential that the price holds above $65,000 or
finds support around the $64,300 mark, where both the 4-hour
exponential moving average (EMA) and moving average (MA) align.
Related Reading: Bitcoin Bears Lose Control As BTC Net-Taker Volume
Shifts Positive If Bitcoin fails to maintain these support levels,
a deeper correction could be expected, with the price potentially
retracing to lower demand zones around $60,000. On the other hand,
if BTC manages to break and hold above $70,000 in the coming days,
this could trigger a strong rally toward challenging all-time
highs. With investors closely monitoring key support and resistance
levels, the next few days will be crucial for determining Bitcoin’s
direction. Featured image from Dall-E, chart from TradingView
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