Bitrabo Editorial
Bitcoin is currently stable but facing significant selling pressure following the liquidation on August 27, hinting at some weakness. However, a potential shift awaits if BTC bulls manage to breach the immediate resistance at $66,000, marking a crucial point for a potential uptrend.
Current Sentiment Among Binance Traders
Traders were previously cautiously optimistic regarding Bitcoin’s volatility. However, the sentiment has shifted towards bearish on Binance, as highlighted by an analyst. This shift indicates a negative trend as more traders are refraining from placing short positions, potentially leading to further downside for Bitcoin.
The prevailing sentiment is neutrality amongst traders, according to the CMC Crypto Fear and Greed Index. This shift has occurred since the downturn in early August, with traders predominantly adopting a wait-and-see approach, contrasting the extreme fear seen in September 2023.
Despite the weak price action and neutral sentiment, a potential recovery above $63,000 could spur demand and provide an opportunity for bullish momentum, potentially leading to further gains in the future.
Positive Funding Rate Amidst Declining Bitcoin Prices
Interestingly, the average funding rate on popular exchanges like Binance, Bybit, and OKX currently stands in positive territory at 0.002%. This suggests that short-leverage traders are receiving payments for maintaining their positions, indicating a market trend favoring sellers.
Typically, positive funding rates are associated with bullish price action, whereas negative rates indicate a bearish market sentiment. The current positive funding rates may further encourage sellers and contribute to the ongoing downward trend in Bitcoin prices.