BTC - in falling channel, RSI near breakout
BTC is in consolidation before breakout up or down.
In this situation I'm leaning to breakout to upside.
My reasons are:
- falling channel --> usually bullish
- RSI very low, near trendline --> breakout is matter of time
- Funding rate and premium index in accumulation
The premium index is based on the difference in price between the perpetual swap contract last price and the price of a volume weighted spot index. Simply put: it shows you for each coin whether the spot market is trading higher than the perp or not.
Positive funding rates indicate that long position traders are dominant and are willing to pay funding to short traders. Positive funding rates imply that many traders are bullish. Negative funding rates indicate that short position traders are dominant and are willing to pay long traders.
Notice that funding rate is mostly at 0.1. Only if big drop occurs it dives into negative territory and the same for over bullish market. Rise over 0.1 and then drop to the same. Zoom out to see how crazy positive was funding rate before big dump to 30k!
Premium index is telling you more here. You can notice seasonality. It doesn't mean we are at the bottom, break to the downside is still very possible, but it tells you that is much better to buy now then sell.
If BTC manages to break true 21 daily MA, retest of red box, Anchored VWAP and broken trendline is probable (take profit zone for short term traders).
Link to All Exchanges Funding Rates for more precise info:
cryptoquant.com/overview/btc-market-data/7724?window=day
In this situation I'm leaning to breakout to upside.
My reasons are:
- falling channel --> usually bullish
- RSI very low, near trendline --> breakout is matter of time
- Funding rate and premium index in accumulation
The premium index is based on the difference in price between the perpetual swap contract last price and the price of a volume weighted spot index. Simply put: it shows you for each coin whether the spot market is trading higher than the perp or not.
Positive funding rates indicate that long position traders are dominant and are willing to pay funding to short traders. Positive funding rates imply that many traders are bullish. Negative funding rates indicate that short position traders are dominant and are willing to pay long traders.
Notice that funding rate is mostly at 0.1. Only if big drop occurs it dives into negative territory and the same for over bullish market. Rise over 0.1 and then drop to the same. Zoom out to see how crazy positive was funding rate before big dump to 30k!
Premium index is telling you more here. You can notice seasonality. It doesn't mean we are at the bottom, break to the downside is still very possible, but it tells you that is much better to buy now then sell.
If BTC manages to break true 21 daily MA, retest of red box, Anchored VWAP and broken trendline is probable (take profit zone for short term traders).
Link to All Exchanges Funding Rates for more precise info:
cryptoquant.com/overview/btc-market-data/7724?window=day
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