Axel Adler Jr., a CryptoQaunt author on the social media platform X, recently brought to light an interesting pattern in the funding rates of Bitcoin. For a remarkable 413 days, the average 30-day moving average (30DMA) Funding Rate has consistently remained in positive territory.
This impressive streak, with the current rate standing at 0.006 and reaching a peak of 0.03 this year, indicates a sustained bullish sentiment among traders. Adler Jr. suggests that traders consider transitioning to “spot mode,” hinting at a strategic adjustment to take advantage of potential market movements.
Despite the promising indications from the funding rates, Bitcoin, the dominant cryptocurrency, is still grappling with obstacles in breaking through crucial resistance levels. Presently, Bitcoin is hovering around the $69,000 mark, showing a marginal decline of 0.1% in the last 24 hours.
Nevertheless, it has seen a modest 2.8% increase over the past week, with its current trading price at $68,483. This standoff at a pivotal resistance point is a common test of the determination and tactics of crypto traders and investors alike.
Axel Adler Jr.’s report not only underscores the resilience of Bitcoin and other cryptocurrencies in maintaining a positive funding rate but also highlights the cautious optimism prevalent in the crypto market.
With the average (30DMA) Funding Rate remaining positive for over a year (413 days) and currently at 0.006, with this year’s peak at 0.03, traders are advised to consider switching to spot mode for strategic advantage.
As traders and investors navigate these uncertain waters, transitioning to spot trading could be a prudent move to capitalize on the expected bullish behavior without the heightened risks associated with leveraged derivatives trading. This strategic adjustment has the potential to yield substantial gains for savvy traders who can time their market entries and exits effectively.