{"id":3854,"date":"2025-01-23T08:00:27","date_gmt":"2025-01-23T08:00:27","guid":{"rendered":"https:\/\/coinsrise.net\/blog\/bitcoin-hovers-above-104k-analyst-reveals-whats-next-based-on-funding-rates\/"},"modified":"2025-01-23T08:00:27","modified_gmt":"2025-01-23T08:00:27","slug":"bitcoin-hovers-above-104k-analyst-reveals-whats-next-based-on-funding-rates","status":"publish","type":"post","link":"https:\/\/coinsrise.net\/blog\/bitcoin-hovers-above-104k-analyst-reveals-whats-next-based-on-funding-rates\/","title":{"rendered":"Bitcoin Hovers Above $104K\u2014Analyst Reveals What\u2019s Next Based on Funding Rates"},"content":{"rendered":"

Bitcoin currently appears to be taking a breather after achieving a new all-time high (ATH) above $109,000 earlier this week. So far, the asset has seen a slightly reduced upward momentum with the price just hovering above $104,000.\u00a0<\/p>\n

However, despite the slowing upward momentum, Bitcoin’s recent performance has prompted renewed interest in the market. CryptoQuant analyst Burak Kesmeci has recently shared insights<\/a> into Bitcoin\u2019s price behavior and key market indicators, shedding light on potential future moves.<\/p>\n

In a recent post on the CryptoQuant QuickTake Platform, Kesmeci\u2019s analysis focused on Binance Bitcoin Funding Rates, a metric that provides notable clues about market sentiment and dynamics.<\/p>\n

By reviewing historical data from previous bull cycles, he identified three distinct phases that can serve as a framework for interpreting the current market environment.<\/p>\n

What’s Next For Bitcoin Based On Funding Rates?<\/h2>\n

According to Kesmeci, during the 2020-2021 bull run, Binance Bitcoin Funding Rates moved through three distinct phases:<\/p>\n

Phase 1 (July 2020): Funding rates remained stable at 0.01 for weeks before demand surged. This phase acted as the \u201ccalm before the storm,\u201d leading Bitcoin from $9,000 to $12,000 as funding rates rose to 0.10.<\/p>\n

Phase 2 (November 2020): After an initial rally, Bitcoin experienced a correction. Funding rates briefly turned negative before flipping positive, supporting Bitcoin\u2019s climb from $12,000 to $19,000.<\/p>\n

Phase 3 (December 2020): As Bitcoin surpassed its previous highs and crossed the $60,000 mark, funding rates climbed significantly, reflecting strong market support.<\/p>\n

\"Binance<\/p>\n

Currently, Kesmeci notes that Binance Bitcoin Funding Rates are at the baseline level of 0.01\u2014consistent with the early stages of a bull cycle. The analyst wrote:<\/p>\n

\n

Analyzing recent data, I believe we\u2019ve completed the first two phases of this bull cycle. For the third phase, I\u2019ll be closely watching if the Binance Bitcoin Funding Rates exceed 0.01.<\/p>\n<\/blockquote>\n

The analyst mentioned that a sustained rise above the 0.01 level would suggest heightened futures market activity and could lead to another significant upward move.<\/p>\n

However, Kesmeci also cautions that elevated funding rates are often unsustainable, and markets tend to correct through \u201clong squeeze\u201d events that restore balance.<\/p>\n

Key Metrics and Divergences in the Market<\/h2>\n

In a separate analysis, another CryptoQuant analyst TraderOasis explored<\/a> several critical metrics, including the Coinbase Premium Index, open interest, and funding rates. These indicators give a picture of Bitcoin\u2019s market health and potential direction.<\/p>\n

TraderOasis highlighted a divergence between the Coinbase Premium Index and Bitcoin\u2019s price movement. While the asset reached a new peak above $109,000, the Coinbase Premium Index formed a lower high. This lack of alignment raised concerns about the sustainability of the current price trend.<\/p>\n

Moreover, a divergence between open interest and price also suggested that the market might lack the robust foundation needed for continued upward momentum. According to TraderOasis, a healthy uptrend requires these metrics to be more closely aligned, which would signal strong investor confidence and a stable market structure.<\/p>\n

Looking at funding rates, TraderOasis observed a recent bearish sentiment among traders. However, he noted that such conditions often precede sharp price movements.<\/p>\n

The analysis suggested the possibility of an initial upward spike to shake out bearish positions, followed by a subsequent pullback. This pattern, if realized, could set the stage for a more sustainable long-term uptrend.<\/p>\n

\"Bitcoin<\/p>\n

Featured image created with DALL-E, Chart from TradingView<\/p>\n","protected":false},"excerpt":{"rendered":"

Bitcoin currently appears to be taking a breather after achieving a new all-time high (ATH) above $109,000 earlier this week. So far, the asset has seen a slightly reduced upward momentum with the price just hovering above $104,000.\u00a0 However, despite the slowing upward momentum, Bitcoin’s recent performance has prompted renewed interest in the market. CryptoQuant…<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[2],"tags":[10,11,9,12,13,14,15],"class_list":["post-3854","post","type-post","status-publish","format-standard","hentry","category-bitcoin-news","tag-bitcoin","tag-bitcoin-market","tag-bitcoin-news","tag-btc","tag-btcusdt","tag-crypto","tag-crypto-market"],"_links":{"self":[{"href":"https:\/\/coinsrise.net\/blog\/wp-json\/wp\/v2\/posts\/3854","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/coinsrise.net\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/coinsrise.net\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/coinsrise.net\/blog\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/coinsrise.net\/blog\/wp-json\/wp\/v2\/comments?post=3854"}],"version-history":[{"count":0,"href":"https:\/\/coinsrise.net\/blog\/wp-json\/wp\/v2\/posts\/3854\/revisions"}],"wp:attachment":[{"href":"https:\/\/coinsrise.net\/blog\/wp-json\/wp\/v2\/media?parent=3854"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/coinsrise.net\/blog\/wp-json\/wp\/v2\/categories?post=3854"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/coinsrise.net\/blog\/wp-json\/wp\/v2\/tags?post=3854"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}