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Bitcoin funding rate signals stability with $104,050 price

Bitcoin funding rate signals stability with $104,050 price

GrafaGrafa2024/12/18 16:00
By:Mahathir Bayena

The Bitcoin (CRYPTO:BTC) funding rate suggests market stability with no signs of excessive overheating, as reported by a crypto analyst.

In a December 17 analysis, Avocado onchain, a contributor to CryptoQuant, examined the Bitcoin funding rate using a 30-day exponential moving average (EMA).

According to Avocado, the data shows "no visible signs of late-cycle overheating," which points to a stable market trajectory.

"This indicates that Bitcoin’s upward trajectory is likely to continue, with significant room for further growth," Avocado added.

Pseudonymous crypto trader Rekt Capital shared a similar outlook, stating in a post on December 17 that Bitcoin has entered its parabolic phase.

Rekt Capital noted that the phase usually lasts for 300 days and Bitcoin is only on "day 41" of this cycle.

The current funding rate, measured at 0.0084% on Binance, reflects a buyer-dominated market, with buyers paying fees to maintain their positions.

This is a significant change from August when Bitcoin's funding rate fell as low as its lowest point of the year after the price dropped below $60,000, signaling a shift in sentiment.

Another trader, Mister Crypto, also pointed out the market’s stability, noting that the funding rates are not overheated.

"We will push higher as long as they will not reach 1%," Mister Crypto stated on December 17.

Bitcoin’s price, which stood at $104,050 at the time of the analysis, has been supported by a rise in trading volumes since October, pushing the price upwards.

Analysts from Bitfinex also projected that Bitcoin price dips in 2025 will likely be short-lived due to institutional demand.

They forecast Bitcoin could reach $145,000 by mid-2025 and potentially hit $200,000 in favorable conditions.

At the time of reporting, the price of Bitcoin (BTC) was $104,174.

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Disclaimer: The content of this article solely reflects the author's opinion and does not represent the platform in any capacity. This article is not intended to serve as a reference for making investment decisions.

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