Document Analysis NLP IA
FREQ, RAKE or TFIDF
Summary (IA Generated)
The price of Bitcoin (bitcoin-price-index” rel=”noopener noreferrer”>BTC) rose 20% on Jan.
First, the funding rate in the futures market remains high.
The funding rate is a mechanism that incentivizes the minority of the market.
If the funding rate is high, it means buyers are paying sellers.
Bittel said that the dollar is now looking oversold and the dollar’s momentum could strengthen in 2021.
“The dollar is looking very oversold.
Hence, if the dollar begins to rally, both gold and Bitcoin could see a potential pullback, particularly after a strong quarter.
Atop the rising dollar, the high funding rate of the Bitcoin futures market is an issue in the short term.
A high futures funding rate is not necessarily bad in itself.
But, if the price of Bitcoin declines while the funding rate remains high, it could raise the probability of a correction.
The combination of the dollar’s momentum and the overheated derivative market make a pullback more likely in the near term.
He stated that miners are selling with no stablecoin inflows, which is a problematic trend.
If stablecoin deposits to exchanges increase, it indicates an overall bullish market sentiment.
Miners are selling, no significant #stablecoin inflows, no #Coinbase outflows, and 15k $BTC flowed into exchanges since yesterday.
In the foreseeable future, the ideal scenario for the bullish traders would be to wait for the funding rate to neutralize and stablecoin inflows to increase.