Financing negative – Binance stock market trend provides enormous rocket fuel for Bitcoin
Binance-Börsen-Trend supplies rocket fuel for Bitcoin
Bitcoin’s short-term trend has become somewhat unclear recently as the crypto currency has been unable to extend its momentum beyond $13,800.
This level is of historical significance, as this is where BTC’s upward trend came to a halt in the summer of 2019 as it recovered.
At the time of writing, Bitcoin Pro is quoted at a price of $13,150. This is roughly the range in which it has been traded in the past 24 hours.
The sharp rise in the US dollar that took place yesterday may have been the trigger for this movement.
Although it is now consolidating at just over $13,000 as bulls and bears hit a dead end, one analyst points to an interesting trend on Binance – and it is extremely bullish.
He notes that financing rates on the platform remain negative, suggesting a „ridiculously pessimistic“ mood that could contribute to a BTC rally.
Bitcoin and the entire crypto market are experiencing a somewhat listless price action today, marking an extension of yesterday’s consolidation phase.
This sideways trend came about shortly after the recent $13,800 rejection, which dealt a blow to Bitcoin’s massive momentum.
Despite the apparent decline in this rejection, a very negative sentiment among traders suggests that a further rise may be imminent.
One analyst points out that the refinancing rates on Binance are a reliable sentiment indicator – and he comments that he expects an upward trend.
Bitcoin trades around $13K – momentum falters
Yesterday bears triggered the critical support of the crypto currency at 12,800 $ – however the purchase pressure here intensively and helped to slow down the descent.
As long as bulls continue to defend themselves against a decline below $13,000, an upswing could be imminent in the near future.
This trend on Binance is bullish for BTC
One trader points to the negative financing of Binance as a positive development for Bitcoin and comments: This indicates that despite the recent rise, investor sentiment is largely bearish.
However, he adds that those who shorten Bitcoin’s strength are „asking to be destroyed“ – and adds that a recovery is likely to be imminent.
„The fact that financial financing is negative is a pretty big deal. Just say it. A bunch of rabble will soon have their lunch money taken away… If the funding for USDT security crimes is negative, people are basically selling BTC they don’t own -> ridiculous bear sentiment (people asking for „rect“).“
Image courtesy of ByzantineGeneral
Whoever is „right“ was virtually destroyed, lost all profits. These increasing short positions could serve as fuel for an upward movement in the coming days and weeks.