The funding rate of Bitcoin dropped to a level unseen since September 2020, signaling fear in the market.
Retail traders have been using high leverage throughout the current bull market, but that’s not the real reason for today’s marketwide sell-off.
Bitcoin whale clusters show $57,046 and $60,045 are the crucial support and resistance levels in the short term.
Data shows pro traders increased leveraged long positions even as the Bitcoin price traded in a tight range this week.
Bitcoin is retesting a key support level at $44K-$45K for the third time in the past week.
Bitcoin recovered quickly from $44,800 to over $50,000 in under 22 hours and here are three key reasons why.
Data shows pro traders opened new leveraged long positions even as Bitcoin price dropped to $45,000 and $5.9 billion in futures contracts were liquidated.
Around $500 million worth of positions were liquidated within hours as the Tesla news caused Bitcoin to spike over $46,000.
Bitcoin is rallying as buyers in the U.S. continue to drive the price up but signs of overheating are emerging in Asia.
The Binance Futures funding rate overtook Deribit on Dec. 18, which has historically led to Bitcoin to consolidate or pull back.