Analysts commented on the recent drop in Bitcoin. According to them, this decrease normalized the higher funding rate or costs associated with long positions.
Bitcoin, which started yesterday evening, deepened its decline in the past hours, falling to $ 58.500. Bitcoin received a reaction from the level of $ 58,500, which is called an important support zone by many analysts, and is trading at $ 60,500 at the time of publication. Bitcoin has broken below the 50-day MA for the first time since October 1, when it experienced a massive bullish wave.
Laurent Kssis, crypto ETF expert and director of crypto trading advisory firm CEC Capital, spoke on the subject, noting the large longs on leading exchanges:
The average funding rate on major exchanges was 0%, a six-month high earlier this month, according to Bybt data. 0% last week after hitting 0589. Watched around 05. Fund rates are calculated and collected by exchanges every eight hours. The costs associated with leverage typically become a burden when momentum stalls, forcing traders to liquidate. With the withdrawal, the average funding rate is 0%. reset to 01.
As it is known, the excitement of Bitcoin’s determination of new ATH close to $ 69,000 last Wednesday, quickly disappeared with the decline to $ 63,000 on Friday. Bitcoin failed to experience a notable bounce over the weekend before starting to drop on Monday.
Amber Funds used the following statements on the subject: