Bitcoin (BTC) is riding high on the back of a “very low and healthy” indicator, according to one market analyst, which could propel it to a key resistance level at $58,000.
In a tweet on April 27, analyst Lex Moskovski noted that futures funding rates are suggesting this week’s BTC price run has been completely organic.
“Low and healthy” funding rates buoy bulls
Funding rates are a popular metric for measuring the health of BTC price movements. They essentially show which traders are on the right side of the bet (long or short) — a high funding rate on a platform means longs are “paying” shorts, while low funding rates imply the opposite.
Negative rates are what analysts look for when determining if any upside is likely to endure, or is due in the short term.
Currently, conditions are right — the move up to $55,000 was likely not fueled by speculative trading action, says Moskovski.
“Funding is very low and healthy,” he wrote.