BTC price pullback after $35K? Bitcoin funding rates turn ‘grossly positive’

” Funding is grossly favorable,” popular trader CryptoBullet wrote throughout an X discussion. “It means that the large bulk of traders are yearning. The majority is never ideal. The market maker will need to clean out those late longs.” BTC short liquidations en route up totaled $161 million and $48 million for Oct. 23 and 24, respectively, per data from keeping an eye on resource CoinGlass.Bitcoin liquidations (screenshot). Source: CoinGlassCommenting on funding rates, fellow trader Daan Crypto Trades argued that the market might yet preserve its direction– part of familiar booming market behavior. #Bitcoin Still a perpetual premium however it has boiled down a bit.Its excellent to note that during the bull market, we often had weeks of positive financing rates as that was just viewed as “the rate to pay to take part”. Comparable how during 2022-2023 we were primarily negative. https://t.co/W3AtaydaQd pic.twitter.com/Hl2mnVz9sa— Daan Crypto Trades (@DaanCrypto) October 24, 2023

Bitcoin (BTC) consolidated near $34,000 after the Oct. 24 Wall Street open as the dust settled on 15% daily gains.BTC/ USD 1-hour chart. Source: TradingViewOpinions diverge on Bitcoin funding ratesData from Cointelegraph Markets Pro and TradingView tracked BTC rate volatility through the day, with $34,000 a focus at the time of writing.The pair had formerly hit 17-month highs near $35,200 on the back of fresh excitement over the possible approval of a Bitcoin spot rate exchange-traded fund (ETF) in the United States.Analyzing the series of occasions that led to a $5,000 everyday candle, keeping track of resource Material Indicators exposed a support/resistance (R/S) turn at $30,600. Source: Material Indicators/XOther aspects lining up to contribute to a deeper debt consolidation included funding rates across exchanges, which at the time of writing were deep inside favorable territory.Be mindful with new longs ❗ pic.twitter.com/jsuXPdIhRq— CryptoBullet (@CryptoBullet1) October 24, 2023

” BTC brief liquidations on the method up amounted to $161 million and $48 million for Oct. 23 and 24, respectively, per data from keeping an eye on resource CoinGlass.Bitcoin liquidations (screenshot).

Bitcoins retracement on the day came inside a reversal up for U.S. dollar strength, which had actually subsided the day prior.Dollar rebounds as BTC cost consolidatesThe U.S. Dollar Index (DXY) retook 106, up 0.5% versus its intraday low.Related: Bitcoin price surge drives BTC-related stocks to brand-new multiweek highsBitcoin continues to exhibit blended responses to DXY movements, where a clear inverse correlation was as soon as apparent.Its too apparent that $DXY is moving downward since it forms a brand-new lower low.At the same time, a nice breakout can be seen in #Bitcoin. pic.twitter.com/NP65yDnlRJ— Trader Tardigrade (@TATrader_Alan) October 24, 2023

Bitcoin (BTC) consolidated near $34,000 after the Oct. 24 Wall Street open as the dust settled on 15% day-to-day gains.BTC/ USD 1-hour chart. Source: TradingViewOpinions diverge on Bitcoin financing ratesData from Cointelegraph Markets Pro and TradingView tracked BTC rate volatility through the day, with $34,000 a focus at the time of writing.The set had previously hit 17-month highs near $35,200 on the back of fresh excitement over the prospective approval of a Bitcoin spot cost exchange-traded fund (ETF) in the United States.Analyzing the sequence of events that led to a $5,000 daily candle, keeping track of resource Material Indicators exposed a support/resistance (R/S) flip at $30,600. Source: Material Indicators/XOther factors lining up to contribute to a much deeper combination included funding rates throughout exchanges, which at the time of composing were deep inside positive territory.Be cautious with brand-new longs ❗ pic.twitter.com/jsuXPdIhRq— CryptoBullet (@CryptoBullet1) October 24, 2023

In a recent commentary, popular macro expert James Stanley argued that the Oct. 26 Personal Consumption Expenditures (PCE) data release would be the significant decisive aspect for DXY in the short term.As Cointelegraph reported, this precedes the Nov. 1 meeting of the Federal Open Market Committee (FOMC), where the U.S. Federal Reserve will decide on interest rate policy. Source: TradingViewThis post does not include financial investment guidance or recommendations.

Other Questions People Ask

What does the BTC price pullback after $35K indicate about market sentiment?

The recent BTC price pullback after reaching $35K suggests a shift in market sentiment, as traders appear to be overly optimistic. Popular trader CryptoBullet noted that funding rates are "grossly positive," indicating that many traders are longing Bitcoin, which can lead to a market correction. This behavior often precedes a consolidation phase, where the market may need to "clean out" late longs before establishing a new trend.

How do Bitcoin funding rates influence the BTC price pullback after $35K?

Bitcoin funding rates play a crucial role in influencing the BTC price pullback after $35K by reflecting trader sentiment. When funding rates are significantly positive, it indicates that a majority of traders are betting on price increases, which can create upward pressure on prices. However, as seen in the recent market movements, this can also lead to liquidations and corrections, as market makers may need to adjust positions to balance out the excessive longing.

What are the implications of BTC short liquidations during the price pullback after $35K?

The implications of BTC short liquidations during the price pullback after $35K are significant for market dynamics. With short liquidations totaling $161 million and $48 million on consecutive days, it highlights the volatility and potential for rapid price movements. This scenario often indicates that traders who bet against Bitcoin are being forced out of their positions, which can further fuel price fluctuations and contribute to a more pronounced pullback.

How might upcoming economic data affect BTC price movements after the pullback from $35K?

Upcoming economic data, particularly the Personal Consumption Expenditures (PCE) release, could have a substantial impact on BTC price movements following the pullback from $35K. As macro expert James Stanley pointed out, this data will be critical in shaping market expectations regarding the U.S. Dollar Index (DXY) and interest rate policies. A strong PCE report could strengthen the dollar and potentially lead to further corrections in Bitcoin prices, while weaker data might support a bullish recovery.

What strategies should traders consider during the BTC price pullback after $35K?

During the BTC price pullback after $35K, traders should consider adopting a cautious approach. Given the "grossly positive" funding rates and the potential for market corrections, it may be wise to avoid entering new long positions until clearer signals emerge. Additionally, monitoring key support levels and upcoming economic indicators can provide valuable insights into potential price movements, allowing traders to make more informed decisions.