The last seven days have gradually seen a decrease in the funding rate of most derivative products. For example, the market lost 18% in the last two days as more traders boycott futures due to uncertainty in price actions. As of the time of writing, the number of traders in the derivatives market has decreased by more than 50% (from 115,000 to 53,000).
As a result of the drop in the number of traders, the buyers couldn’t respond to the constant taunt of the sellers, leading to retracements during this time. Things are looking a little better for the bulls as more than 57% of open orders are long orders and as a result, BTC is recovering from a recent dip suffered.
The effect of the raging bulls is felt not only felt in futures as the spot market is also responding favourably to the activities of the buyers. The BTC/USD pair increased by 6% over the last 24 hours.
The largest crypto by market cap bounced of the $43,900 support making earlier predictions of BTC in a safe zone now as it has no tendencies of dipping as low as $40,000 still valid.
The price recovery could jump-start a massive rally that may propel BTC to $50k this weekend. As of the time of writing, bitcoin is trading at $46,800. The current price suggests that the king coin is still trading within the previously laid out channels.
In the current price channel, the king coin has to cross $48,974 to advance to the next course or risk a price retracement back to the previous course. As the largest crypto exits its current channel to the next, we are sure that it will get the needed boost to flip the $50,000.
Bitcoin is sure to influence the sentiments of other cryptos as we may see and increase in the prices of most coins. This may result in the improvement of the global cryptocurrency market cap.