CandleFocus

Bitcoin Eyes $58K With Downtrodden Crypto Markets Exposed to Short Squeezes, Says Analyst

Author: Content Editor
Bitcoin (BTC) and other cryptocurrencies are experiencing a rebound after last week's market plunge. Bitcoin's price is approaching $58,000, up 1.7% in the past 24 hours and nearly 10% from last Friday's low. Ether (ETH) and solana (SOL) have also seen modest gains. Altcoins such as Toncoin (TON), Artificial Superintelligence Alliance (FET), and Internet Computer (ICP) have seen significant gains of 5%-8%. The upcoming U.S. presidential debate is not expected to mention cryptocurrencies, but the two parties' approaches to digital assets and their potential impact on prices add importance to the event. Uncertainty surrounding the election is likely to affect crypto prices until November. However, a metric that typically precedes a market rally is suggesting significant gains in the coming weeks and months. The 30-day average funding rates for perpetual swaps have turned negative, which has historically coincided with a market bottom. Based on previous occurrences, the average return in the following 90-day period could be as high as 79%. Open interest for derivatives is also increasing, potentially leading to short squeezes. The report concludes that the funding rate environment presents a compelling case for aggressive exposure to Bitcoin in the coming months.

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