Axel Adler Jr., a CryptoQaunt author on the social media platform X, has recently drawn attention to an interesting development in the funding rates of Bitcoin. For a remarkable 413-day period, the average 30-day moving average (30DMA) Funding Rate has remained in positive territory.
This sustained positive streak, with the current rate at 0.006 and reaching a peak of 0.03 this year, indicates a consistent bullish sentiment among traders. Adler Jr. suggests that traders should consider switching to “spot mode,” implying a strategic shift to take advantage of potential market movements.
Despite these positive indicators, Bitcoin, the leading cryptocurrency, continues to face challenges in breaking through critical resistance levels. Currently hovering around the $69,000 mark, Bitcoin has experienced a slight decline of 0.1% in the past 24 hours.
However, it has seen a modest increase of 2.8% over the past week, with its current trading price at $68,483. This situation, where Bitcoin struggles to break through a crucial resistance point, is a common scenario that tests the resolve and strategies of crypto traders and investors.
Axel Adler Jr.’s report not only highlights the resilience of Bitcoin and other cryptocurrencies in maintaining a positive funding rate, but also emphasizes the cautious optimism that pervades the crypto market.
For over a year (413 days), the average (30DMA) Funding Rate has remained in the positive zone, with the current value at 0.006 and reaching its peak this year at 0.03.
Traders are advised to switch to spot trading mode.
pic.twitter.com/4fiC8SbUOB
— Axel Adler Jr (@AxelAdlerJr)
May 27, 2024
As traders and investors navigate these uncertain waters, the suggestion to switch to spot trading could be a tactical move to take advantage of the expected bullish behavior without the higher risks associated with leveraged derivatives trading. This strategic shift has the potential to yield significant gains for savvy traders who can time their entries and exits accurately.
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BTC
