Cryptheory: NFT, Play-to-Earn, Crypto News

24/7 crypto news, cryptocurrency meaning, guides, learning, #cryptohelpschildren

Are you following the BTC Funding Rate indicator? You should, because it can indicate a possible market direction!

2 min read


There are a number of different indicators in the world that aim to approximate the current state of the market and predict possible movement and its direction. One of the suitable indicators in the field of cryptocurrencies is the BTC Funding Rate, which can relatively successfully predict future movements and market direction!

BTC Funding Rate

Analysts from the CryptoQuant platform have come closer to how the indicator works BTC Funding Rate. As history data show, the 72-hour version of this indicator appears to have been effective in pointing to peaks and lows in the cryptocurrency market.

“Funding Rate” is a regular payment that traders must make to each other on the futures market in the case of an open position – whether long or short. When the value of this metric is negative, it means that short positions pay a premium for longs to keep their positions. Such values ​​also show that there are currently more shorts in the futures market and the majority sentiment is bearish – not very positive. On the other hand, the positive values ​​of the indicator suggest that long positions over shorts currently dominate. Naturally, this trend means that the overall sentiment in the cryptocurrency market is growing. fomo.

Bitcoin Funding Rate

As you can see in the picture above, almost every time these values ​​were high, this parameter was corrected and “smoothed”. This is because investors were still adding long positions, so the funding rate was increasing. A large number of long liquidations can sharply reduce the price and represents a kind of snowball effect, where the liquidation of positions triggers more and more liquidations. This process is called “long squeeze”. This metric seems to have been still effective in indicating peaks recently, as the last correction in BTC’s price took place shortly after the increase in funding. This indicator is also suitable for indicating the local market bottom. Especially when the Funding Rate values ​​are negative.

A suitable alternative to such an indicator is also the well-known and popular BTC Fear and Greed Index, which shows the current mood in the cryptocurrency market from a broader perspective, taking into account several factors.

Uniswap price prediction 2022 – 2030

All content in this article is for informational purposes only and in no way serves as investment advice. Investing in cryptocurrencies, commodities and stocks is very risky and can lead to capital losses.

73 thoughts on “Are you following the BTC Funding Rate indicator? You should, because it can indicate a possible market direction!

  1. Hmm it appears like your blog ate my first comment (it was super long) so I guess I’ll just sum it up what I wrote and say, I’m thoroughly enjoying your blog. I as well am an aspiring blog writer but I’m still new to everything. Do you have any tips for first-time blog writers? I’d genuinely appreciate it.

  2. Thanks for your entire work on this blog. My daughter enjoys working on internet research and it’s really obvious why. A lot of people hear all regarding the dynamic medium you produce priceless guides via your web site and as well welcome contribution from other people about this subject matter plus our favorite daughter is really studying a lot. Take pleasure in the remaining portion of the new year. You are performing a really great job.

  3. I have been browsing on-line more than 3 hours as of late, yet I by no means discovered any interesting article like yours. It?¦s beautiful worth sufficient for me. In my view, if all web owners and bloggers made good content as you probably did, the web will probably be a lot more helpful than ever before.

  4. Thanks for some other great post. Where else may just anybody get that kind of info in such an ideal manner of writing? I have a presentation next week, and I’m on the search for such info.

Leave a Reply

Your email address will not be published. Required fields are marked *