Should Traders Double Their Bitcoin Accumulation?

Should Traders Double Their Bitcoin Accumulation? 

 Bitcoin price suffered quite a few price corrections after it touched its most recent ATH around the $ 42,000 mark. The corrections would be an understatement, perhaps, as the price of Bitcoin has fallen more than 15 percent in Solo in the last three days, with the cryptocurrency trading at $ 31,181 at press time. 

 It is understandable that the BTC's performance has fueled speculation that the real currency's bull run may have come to an end, especially since, at press time, Bitcoin's trading price was lower than yesterday's opening price. While Bitcoin price performance is important, it alone is not sufficient to identify trending market sentiment. Bitcoin futures funding rates have always been a key metric in determining investor sentiment as well as the general direction of the market. - Glassnode, BTC funding rates fell into the negative zone, a development that suggested that short sellers are dominating Bi tcoin's market.

 Funding rates have always noticed a correlation with market sentiment. In the case of Bitcoin, if the funding rate is too high, then the market may experience a bit of volatility, and traders pay a premium to go long. , when the funding rate is low and in this case in the negative zone, it can be understood that the market is cooling down, and the crypto is likely to trade within the limits of a narrow range. 

 Given that Bitcoin price kept registering new ATHs a few weeks ago, the current phase of consolidation coupled with price corrections seems to be forever in the short term, there is more than one reason why Bitcoin traders can be optimistic over the long term. 

 For starters, the whale addresses for Bitcoin have continued to grow. According to Santiment, there are around 233 addresses that are over 1000 BTC each along with one other address that is reported to contain over 100,000 bitcoins. Despite the current market sentiment, long-term investors continue to support Bitcoin.

. Bitcoin's hash rate was also a promising metric. After setting up an ATH on Jan. 17, Bitcoin's hash rate (7-day average) continues to move north. This is promising for the coin’s long-term prospects as it shows that there are enough resources available due to network security and robustness.

While Bitcoin funding rates have slipped into negative zone, traders can take this as an important opportunity considering accumulating more Bitcoin BTC at this level may not be such a bad idea after all. 
Previous Post Next Post

BovoTv 2021 inc