After Bitcoin peaked at $10,600 late on Saturday evening, bears reasserted control over the cryptocurrency. Now, BTC trades for $10,300, having dropped as low as the low-$10,200s as sellers suddenly entered the market.
This was a departure from the expectations that analysts had for Bitcoin just hours before the move. Many thought that the move above $10,500 after days of ranging was set to take BTC towards $11,000.
While this didn’t play out, there are signs that the ongoing correction is one that is too aggressive. That’s to say, there’s a good likelihood Bitcoin will bounce from here.
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It appears that derivatives traders led Bitcoin on Sunday morning.
According to ByBt, a crypto derivatives tracking site, a majority of Bitcoin margin exchanges have negative funding rates at the moment. The funding rate is the fee that longs pay shorts to normalize