BTC/USDT 1-hour price chart (Binance). Source: TradingView.com
First, the funding rate in the futures market remains high. The funding rate is a mechanism that incentivizes the minority of the market.
For example, if there are fewer short-sellers in the market, then buyers have to pay short-sellers a fee every eight hours. If the funding rate is high, it means buyers are paying sellers.
Second, the U.S. dollar strength index (DXY) is beginning to recover, which could be a bearish sign for Bitcoin and gold.
What comes next after the drop and the recovery of Bitcoin?
According to Julien Bittel, a multi-asset fund manager at Pictet Asset Management, the U.S. dollar is “very oversold.”
The dollar has continuously declined since the pandemic began in early 2020, struggling to