On-chain data shows the Bitcoin funding rates have observed a rise again, suggesting that another long squeeze may be in store for the crypto.<\/p>\n

Bitcoin Funding Rates Show Relatively High Positive Value<\/h2>\n

As explained by an analyst in a CryptoQaunt post<\/a>, the current positive funding rates may mean the price could observe a decline soon.<\/p>\n

The \u201c funding rate<\/a>\u201d is an indicator that measures the periodic fee that Bitcoin futures traders are paying each other.<\/p>\n

When the value of this metric is greater than zero, it means long traders are paying a premium to short investors to hold on to their positions right now. This trend therefore suggests that the majority sentiment is bullish at the moment.<\/p>\n

On the other hand, negative values of the indicator imply that a bearish sentiment is more dominant as shorts are paying longs currently.<\/p>\n

Now, here is a chart that shows the trend in the Bitcoin funding rates (72-hour MA) in the year 2022 so far:<\/p>\n

$\"Bitcoin$ <\/p>\n

Looks like the value of the metric has surged up recently | Source: CryptoQuant<\/a><\/pre>\nAs you can see in the above graph, the quant has marked the points where the Bitcoin funding rates reached a peak during the last few months.<\/p>\n
It seems like shortly after relatively high positive funding rates occurred, the price of the crypto observed a steep decline.<\/p>\nRelated Reading |\u00a0Five Months Of Fear: When Will The Bitcoin Carnage End?<\/a><\/em><\/strong><\/p>\n
A long squeeze is a mass leverage flush event where long liquidations cascade together. Such a squeeze can sharply drive the price down and the above instances seem to have been marked by this squeeze.<\/p>\n
A short squeeze<\/a>, on the contrary, can rather uplift the price. The analyst therefore argues that the Bitcoin market will require negative funding rates if the price has to observe any real improvements.<\/p>\n
However, as longs are currently dominating the futures market, a long squeeze will need to happen to take the funding rate down and pile up shorts.<\/p>\n
Related Reading |\u00a0Bitcoin Institutional Outflows Near One-Year Highs, More Downside Coming?<\/a><\/em><\/strong><\/p>\n
But with that, the price of the crypto may also suffer another plunge down just like the instances earlier in the year.<\/p>\n
BTC Price<\/h2>\nAt the time of writing, Bitcoin\u2019s price<\/a> floats around $39.5k, down 1% in the last seven days. Over the past month, the crypto has lost 15% in value.<\/p>\n
The below chart shows the trend in the price of the coin over the last five days.<\/p>\n
<\/p>\n
The price of BTC seems to have observed a sharp rise in the past twenty-four hours | Source: BTCUSD on TradngView<\/a><\/pre>\nBitcoin has been struggling for many months now and the price has recently shown no signs of any real recovery as it remains stuck below the $40k level.<\/p>\nFeatured image from Unsplash.com, charts from TradingView.com, CryptoQuant.com<\/pre>\n<\/div>\n
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On-chain data shows the Bitcoin funding rates have observed a rise again, suggesting that another long squeeze may be in store for the crypto. Bitcoin Funding Rates Show Relatively High Positive Value As explained by an analyst in a CryptoQaunt post, the current positive funding rates may mean the price could observe a decline soon. […]<\/p>\n","protected":false},"author":1,"featured_media":25487,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[32],"tags":[36,306,766,430,1287,1379,836],"class_list":{"0":"post-25486","1":"post","2":"type-post","3":"status-publish","4":"format-standard","5":"has-post-thumbnail","7":"category-bitcoin","8":"tag-bitcoin","9":"tag-funding","10":"tag-incoming","11":"tag-long","12":"tag-rates","13":"tag-squeeze","14":"tag-surge"},"_links":{"self":[{"href":"https:\/\/cryptocurrencypanther.com\/wp-json\/wp\/v2\/posts\/25486","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/cryptocurrencypanther.com\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/cryptocurrencypanther.com\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/cryptocurrencypanther.com\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/cryptocurrencypanther.com\/wp-json\/wp\/v2\/comments?post=25486"}],"version-history":[{"count":0,"href":"https:\/\/cryptocurrencypanther.com\/wp-json\/wp\/v2\/posts\/25486\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/cryptocurrencypanther.com\/wp-json\/wp\/v2\/media\/25487"}],"wp:attachment":[{"href":"https:\/\/cryptocurrencypanther.com\/wp-json\/wp\/v2\/media?parent=25486"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/cryptocurrencypanther.com\/wp-json\/wp\/v2\/categories?post=25486"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/cryptocurrencypanther.com\/wp-json\/wp\/v2\/tags?post=25486"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}