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Bitcoin funding rate near zero signals potential for growth

Bitcoin funding rate near zero signals potential for growth

GrafaGrafa2024/10/01 03:55
By:Isaac Francis

Bitcoin (CRYPTO:BTC) has defied its typical September trend of negative returns, recording nearly 9% gains for the month.

Currently trading above $64,000, market experts are now predicting favorable conditions and the possibility of continued bullish momentum for the leading cryptocurrency.

According to a recent update from Matrixport, Bitcoin’s funding rate has returned to near zero, suggesting that futures traders are not heavily leveraged on the long side despite the ongoing rally.

This opens the door for further long positions, which could push Bitcoin’s price higher.

Matrixport also noted that the current rally seems to be driven more by spot buying, indicating a long-term, strategic approach rather than speculative activity.

Analysts point to additional signs of Bitcoin’s positive trajectory.

Market analyst Matthew Hyland expressed optimism in a recent post on X (formerly Twitter), stating that if Bitcoin closes a week above $65,000, it would create a higher-high and higher-low for the first time in over six months.

This pattern could signal a shift in Bitcoin’s long-term trend, supporting a continued recovery.

As October approaches, expectations are rising for Bitcoin’s potential performance in what has been dubbed "Uptober."

Historically, October has been a strong month for Bitcoin, and many believe it could reclaim or even surpass its all-time high in the coming months.

Market analyst Michael van de Poppe is among those optimistic about the fourth quarter, predicting that Bitcoin will break its previous peak and that altcoins could also see significant rallies, potentially delivering 3-5x returns.

With Bitcoin supply in profit remaining consistently above 80%, signs continue to point toward a bull market, suggesting that current conditions may offer a good buying opportunity.

As Q4 begins, Bitcoin enthusiasts are closely watching for further upward movement.

At the time of writing, the Bitcoin price was $63,559.95. 

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Disclaimer: The content of this article solely reflects the author's opinion and does not represent the platform in any capacity. This article is not intended to serve as a reference for making investment decisions.

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