Within the last hour, the price of Bitcoin surpassed $11,000 across major exchanges, including Coinbase and Binance.
This comes after nearly two weeks of low volatility as the cryptocurrency market remained stagnant and Bitcoin price was pinned below multiple resistance levels.
Unlike the previous rallies which saw Ether lead the Bitcoin upsurge, only BTC has moved higher whereas other major cryptocurrencies are still in the red.
Funding is a mechanism used by Bitcoin futures exchanges to ensure balance in the market.
If the majority of traders in the market are betting against an asset's price by shorting, then short contract holders have to compensate long holders.
Bitcoin funding rates on Skew show that the funding rates still remain mostly negative across major exchanges and this indicates that traders are continuing to short BTC despite its upward movement.
The data suggests three possible trends: shorts are being squeezed, the spot market leading the rally, or futures are having a minimal effect on BTC price.
Various data points also hint at the spot market leading the current rally.
If the spot market is pushing BTC up, the chances of a big long squeeze causing a massive correction is low.
The Fed meetingThe Bitcoin upsurge also coincided with the recovery of gold and the intraday rally of the U.S. stock market.
3 reasons Bitcoin price just hit $11,000 despite altcoin stagnance
Published on Sep 16, 2020
by Cointele | Published on Coinage
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