© Reuters. The data platform is predicting that BTC will rise soon due to the low rate of funding
- Santiment recently highlighted that the BTC funding price on Bitmex has fallen to the most negative percentage since March.
- According to the company, the price of BTC could rise soon if history repeats itself.
- At press time, BTC price is trading at $27,673.51 after slight gains over the course of 24 hours.
Santiment, the blockchain intelligence firm, tweeted this morning that the funding rate (BTC) on Bitmex recently reached its highest negative rate since mid-March this year. The platform also predicted that the price of BTC may soon increase as a result.
Funding rate on Bitmex (Source: Santiment)
According to Santiment, the probability of a BTC price rally has historically increased when investors and traders have largely assumed that its price will decline. However, this theory has not yet been implemented, since between May 6, 2023 and yesterday, the price of BTC fell by almost 4%.
At the time of publication, CoinMarketCap indicated that the leading cryptocurrency price was able to print a gain of 0.27% over the past 24 hours. As a result, the price of BTC reached $27,673.51. Unfortunately, this positive price action was not able to turn the weekly price performance into the green, and BTC remained down 2.86% over the past 7 days.
BTC/USDT Daily Chart (Source: TradingView)
Technical indicators on the daily chart of BTC are indicating that the price of the cryptocurrency will continue to decline over the next 24-48 hours. The descending triangle, which was formed after the BTC price made lower highs over the past two weeks, indicates that there is still massive selling pressure on the chart of the market leader.
If BTC price succumbs to this selling pressure, a drop to $26,600 is likely in the short term. This bearish notion is supported by the recent bearish cross between the 9-day and 20-day EMA, which indicates that Bitcoin has entered a short-term bearish trend.
Confirmation of the bearish thesis will be when BTC price closes below the $27,380 level. On the other hand, BTC holding a position above this level will either lead to a short consolidation between $27,380 and $28,420, or a break above the 9-day and 20-day EMA lines around $28,700.
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The post-data platform predicted that BTC will soon rise due to the low funding rate that appeared first in the Coin issue.