Bitcoin is experiencing a decline in funding rates and short sellers' activity, while miners are gaining significant profits.
Funding Rate Drop: A Market Signal
The funding rate is crucial for monitoring the market since it shows which position between longs and shorts dominates. According to CryptoQuant, the 30-day Simple Moving Average of the funding rate recorded a 9% decrease starting from March. A continued downtrend could force traders to pay for long positions.
Bitcoin News: Miners' Profits
Bitcoin's supply and demand dynamics heavily rely on miners active in the network. Recent data indicate that miners achieved over $27 million in profits. Historically, miner sell-offs often precede major price increases.
2017 Repeating?
The current Bitcoin price is considered undervalued, reminiscent of the March 2017 situation. Analysts anticipate a significant price rally if current market conditions persist. A price dip may serve as the foundation for a breakout.
The decline in Bitcoin's funding rate and miners' current activity create conditions for significant price changes. While short-term forecasts may be uncertain, historical patterns point to potential positive developments.
