{"id":24047,"date":"2023-10-24T15:03:58","date_gmt":"2023-10-24T15:03:58","guid":{"rendered":"https:\/\/nftandcrypto-news.com\/crypto\/btc-price-pullback-after-35k-bitcoin-funding-rates-turn-grossly-positive\/"},"modified":"2023-10-24T15:04:01","modified_gmt":"2023-10-24T15:04:01","slug":"btc-price-pullback-after-35k-bitcoin-funding-rates-turn-grossly-positive","status":"publish","type":"post","link":"https:\/\/nftandcrypto-news.com\/crypto\/btc-price-pullback-after-35k-bitcoin-funding-rates-turn-grossly-positive\/","title":{"rendered":"BTC price pullback after $35K? Bitcoin funding rates turn ‘grossly positive’"},"content":{"rendered":"
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Bitcoin (BTC) consolidated near $34,000 after the Oct. 24 Wall Street open as the dust settled on 15% daily gains.<\/p>\n

BTC\/USD 1-hour chart. Source: TradingView<\/em><\/figcaption><\/figure>\n

Opinions diverge on Bitcoin funding rates<\/h2>\n

Data from Cointelegraph Markets Pro and TradingView tracked BTC price volatility through the day, with $34,000 a focus at the time of writing.<\/p>\n

The pair had previously hit 17-month highs near $35,200 on the back of fresh excitement over the potential approval of a Bitcoin spot price exchange-traded fund (ETF) in the United States.<\/p>\n

Analyzing the sequence of events which led to a $5,000 daily candle, monitoring resource Material Indicators revealed a support\/resistance (R\/S) flip at $30,600.<\/p>\n

The speed at which the market broke through resistance in place throughout the past year-and-a-half was surprising, an X post read<\/a>. Material Indicators \u201chonestly expected to see more resistance at $30.5k, $31.5k and even $33k.\u201d <\/p>\n

\u201cThose levels were obliterated and and when an $87M buy wall appeared at $30.6k that set the foundation for a R\/S flip with no hesitation from the market,\u201d it explained. <\/p>\n

\u201cOnce $32k was taken out, some of the overhead liquidity was pulled and the thin liquidity made it easy for BTC to rip to $35k quickly.\u201d<\/p><\/blockquote>\n

The post added that with some bid liquidity now pulled from below, there was a \u201copportunity for a potential retrace.\u201d<\/p>\n

One of two accompanying charts covered the past 24 hours on the Binance order book.<\/p>\n

BTC\/USD order book data for Binance. Source: Material Indicators\/X<\/em><\/figcaption><\/figure>\n

Other factors lining up to contribute to a deeper consolidation included funding rates across exchanges, which at the time of writing were deep inside positive territory.<\/p>\n

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Be cautious with new longs\u2757\ufe0f pic.twitter.com\/jsuXPdIhRq<\/a><\/p>\n

\u2014 CryptoBullet (@CryptoBullet1) October 24, 2023<\/a><\/p><\/blockquote>\n

\u201cFunding is grossly positive,\u201d popular trader CryptoBullet wrote during an X discussion. <\/p>\n

\u201cIt means that the vast majority of traders are longing. The majority is never right. The market maker will have to wipe out those late longs.\u201d<\/p><\/blockquote>\n

BTC short liquidations on the way up totalled $161 million and $48 million for Oct. 23 and 24, respectively, per data from monitoring resource CoinGlass.<\/p>\n

Bitcoin liquidations (screenshot). Source: CoinGlass<\/em><\/figcaption><\/figure>\n

Commenting on funding rates, fellow trader Daan Crypto Trades argued that the market might yet preserve its direction \u2014 part of familiar bull market behavior.<\/p>\n

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#Bitcoin<\/a> Still a perpetual premium but it has come down a bit.<\/p>\n

It’s good to note that during the bull market, we often had weeks of positive funding rates as that was just seen as “the price to pay to participate”.<\/p>\n

Similar how during 2022-2023 we were mostly negative. https:\/\/t.co\/W3AtaydaQd pic.twitter.com\/Hl2mnVz9sa<\/a><\/p>\n

\u2014 Daan Crypto Trades (@DaanCrypto) October 24, 2023<\/a><\/p><\/blockquote>\n

Bitcoin\u2019s retracement on the day came inside a reversal upward for U.S. dollar strength, which had waned the day prior.<\/p>\n

Dollar rebounds as BTC price consolidates<\/h2>\n

Related:\u00a0Bitcoin price surge drives BTC-related stocks to new multiweek highs<\/em><\/strong><\/p>\n

The U.S. dollar index (DXY) retook 106, up 0.5% versus its intraday low.<\/p>\n

Bitcoin continues to exhibit mixed reactions to DXY movements, where once a clear inverse correlation was apparent.<\/p>\n

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It’s too obvious that $DXY<\/a> is moving downward since it forms a new lower low.
At the same time, a nice breakout can be seen in #Bitcoin<\/a>. pic.twitter.com\/NP65yDnlRJ<\/a><\/p>\n

\u2014 Trader Tardigrade (@TATrader_Alan) October 24, 2023<\/a><\/p><\/blockquote>\n

In recent commentary<\/a>, popular macro analyst James Stanley argued that the Oct. 26 Personal Consumption Expenditures (PCE) data release would be the major decisive factor for DXY in the short term.<\/p>\n

As Cointelegraph reported, this precedes the Nov. 1 meeting of the Federal Open Market Committee (FOMC), where the Federal Reserve will decide on interest rate policy.<\/p>\n

\u201c104.70 was the low from last FOMC, that’s what bulls need to defend imo,\u201d Stanley wrote.<\/p>\n

U.S. dollar index (DXY) 1-hour chart. Source: TradingView<\/em><\/figcaption><\/figure>\n

This article does not contain investment advice or recommendations. Every investment and trading move involves risk, and readers should conduct their own research when making a decision.\n<\/p>\n<\/div>\n