Within the last hour, the price of Bitcoin (BTC) surpassed $11,000 across major exchanges, including Coinbase and Binance. This comes after nearly two weeks of low volatility as the cryptocurrency market remained stagnant and Bitcoin price was pinned below multiple resistance levels.
BTC/USD daily chart. Source: TradingView.com
Unlike the previous rallies which saw Ether (ETH) lead the Bitcoin upsurge, only BTC has moved higher whereas other major cryptocurrencies are still in the red. Decentralized finance (DeFi) tokens, which outperformed BTC throughout August, have been underperforming in the past several days.
Negative funding rates
The recent uptrend of Bitcoin has many irregular patterns compared with previous uptrends. BTC has been rallying on its own in the past three days, accompanied by negative funding rates.
Funding is a mechanism used by Bitcoin futures exchanges to ensure balance in the market. If the majority of traders in the market are betting against an asset’s price by shorting, then short contract holders