As Bitcoin rallies past $57k, Quant explains using on-chain analysis why the cryptocurrency may see a pullback here.
Bitcoin Funding Rate And Futures Open Interest Show Rising Values
As explained by an analyst in a CryptoQuant post, some BTC indicators are showing values that have historically signaled that a correction could be coming soon.
The first metric of relevance is the Bitcoin funding rate, which is defined as the periodic payment that futures contract traders have to pay. Positive values imply most traders are bullish and long traders are paying this fee to short traders.
While negative values mean just the opposite; traders are bearish on Bitcoin and short traders have to pay long traders.
The other indicator is the futures open interest. This metric