NewsBTC
No Result
View All Result
  • Cryptocurrency News
    • Bitcoin News (BTC)
    • Ethereum News (ETH)
    • Ripple News (XRP)
    • Shiba Inu News (SHIB)
    • Cardano News (ADA)
    • Dogecoin News (DOGE)
    • Solana News (SOL)
    • Litecoin News (LTC)
    • Avalanche News (AVAX)
    • Polygon News (MATIC)
  • Crypto Prices
    • Binance Coin (BNB) Price
    • Bitcoin (BTC) Price
    • Cardano (ADA) Price
    • Chainlink (LINK) Price
    • Dogecoin (DOGE) Price
    • Ethereum (ETH) Price
    • Litecoin (LTC) Price
    • Polkadot (DOT) Price
  • Crypto Resources & Directory
  • All Crypto
  • Play GamesTry
  • CasinosTry
Breaking News: Celsius Founder Alex Mashinsky Receives 12-Year Prison Sentence
  • Cryptocurrency News
    • Bitcoin News (BTC)
    • Ethereum News (ETH)
    • Ripple News (XRP)
    • Shiba Inu News (SHIB)
    • Cardano News (ADA)
    • Dogecoin News (DOGE)
    • Solana News (SOL)
    • Litecoin News (LTC)
    • Avalanche News (AVAX)
    • Polygon News (MATIC)
  • Crypto Prices
    • Binance Coin (BNB) Price
    • Bitcoin (BTC) Price
    • Cardano (ADA) Price
    • Chainlink (LINK) Price
    • Dogecoin (DOGE) Price
    • Ethereum (ETH) Price
    • Litecoin (LTC) Price
    • Polkadot (DOT) Price
  • Crypto Resources & Directory
  • All Crypto
  • Play GamesTry
  • CasinosTry
Bitcoin News
No Result
View All Result
Breaking News: Celsius Founder Alex Mashinsky Receives 12-Year Prison Sentence

Quant Explains How Bitcoin Funding Rate Predicted The Latest Top

Keshav Verma
Keshav Verma
3 years ago
3 mins read
Bitcoin

Reason to trust

Strict editorial policy that focuses on accuracy, relevance, and impartiality
Created by industry experts and meticulously reviewed
The highest standards in reporting and publishing
How Our News is Made

Strict editorial policy that focuses on accuracy, relevance, and impartiality

Ad discliamer

Morbi pretium leo et nisl aliquam mollis. Quisque arcu lorem, ultricies quis pellentesque nec, ullamcorper eu odio.

A quant has explained how the Bitcoin funding rate (72 hour) may be able to correctly signal tops and bottoms in the price of the crypto.

Bitcoin Funding Rate May Be Able To Indicate Tops And Bottoms In The Market

As explained by an analyst in a CryptoQuant post, the 72-hour version of the funding rate looks to have been effective at pointing out tops and bottoms in the BTC market.

The “funding rate” is the periodic payment that Bitcoin futures traders (either long or short) have to make between each other.

When the value of this metric is negative, it means shorts are paying a premium to the longs to keep their positions right now.

Such values show there are more shorts in the futures market at the moment, and the majority sentiment is bearish.

On the other hand, positive values of the indicator imply longs are dominating the shorts currently. Naturally, this trend means the overall sentiment is bullish in the Bitcoin market currently.

Related Reading | Bitcoin Trading Volume Continues To Remain At Low Levels

Now, here is a chart that shows the trend in the BTC funding rate (72 hour) over the past few months:

Bitcoin Funding Rate

The relation between the BTC price and the funding rate | Source: CryptoQuant

As you can see in the above graph, the quant has marked the relevant points that help establish a correlation between the Bitcoin funding rates and the price.

It looks like whenever the indicator had a rising value along with the price observing a decline, a sharp correction in the value of BTC took place shortly after.

Related Reading | Bitcoin Exchange Traded Products Near 1% Of Total BTC Supply

This is because investors kept on adding longs (hence why the funding rate became more positive) when the price was instead going down. Such a trade is quite risky as if the trend of decline continues for long, then liquidation can quickly happen.

A large amount of long liquidations can sharply drive the price down, a process that’s called a “long squeeze.” However, an interesting fact here is that the funding rates still had a very low value, which means there weren’t that many longs present.

The analyst in the post has pointed out that any small adjustment in the indicator can affect the price and investor psychology during periods with such volumes.

The metric still seems to have been effective at indicating tops recently as the latest correction in the price of Bitcoin took place soon after a spike in the funding rate.

BTC Price

At the time of writing, Bitcoin’s price floats around $43.7k, down 7% in the past week.

Bitcoin Price Chart

BTC's price plunges down | Source: BTCUSD on TradingView
Featured image from Unsplash.com, charts from TradingView.com, CryptoQuant.com
Tweet123Share196ShareSend
Keshav Verma
Keshav Verma

Keshav Verma

Keshav is currently a senior writer at NewsBTC and has been attached to the website since June 14, 2021.

Read more

Keshav has been writing for many years, first as a hobbyist and later as a freelancer. He has experience working in a variety of niches, even fiction at one point, but the cryptocurrency industry has been the longest he has been attached to.

In terms of official educational qualifications, Keshav holds a bachelor’s degree in Physics from one of the premier institutes of India, the University of Delhi (DU). He started the degree with an aim of eventually making a career in Physics, but the onset of COVID led to a shift in plans. The virus meant that the college classes had to be delivered in the online-mode and with it came free time for him to explore other passions.

Initially only seeking to make some beer money, Keshav unexpectedly landed clients offering real projects, after which there was no looking back. Writing was something he had always enjoyed and to be able to do it for a living was like a dream come true.

Keshav completed his Physics degree in 2022 and has been focusing on his writing career since, but that doesn’t mean his passion for Physics has ended. He eventually plans to re-enter university to obtain a masters degree in the same field, but perhaps only to satiate his own interest rather than for using it as a means to find employment..

Keshav has found blockchain and its concepts fascinating ever since he started going down the rabbit-hole back in 2020. On-chain analysis in particular has been something he likes to research more about, which is why his NewsBTC pieces tend to involve it in some form.

Being of the science background, Keshav likes if concepts are clear and consistent, so he generally explains the indicators he talks about in a bit of detail so that the readers can perhaps come out having understood and learnt something new.

As for hobbies, Keshav is super into football, anime, and videogames. He enjoys football not only as a watcher, but also as a player. For games, Keshav generally tends towards enjoying singleplayer adventures, with EA FC (formerly FIFA) being the only online game he is active in. Though, perhaps due to being ultra-focused on the game, he is today a semi-pro on the EA FC scene, regularly participating in tournaments and sometimes even taking back prize money.

Because of his enthusiasm for anime and games, he also self-learned Japanese along the way to consume some of the untranslated gems out there. The skill didn’t merely remain as just a hobby, either, as he put it to productive use during his exploration for small-time gigs at the start of COVID, fulfilling a couple of Japanese-to-English translation jobs.

Keshav is also big into fitness, with agility and acceleration-related workouts making a big part of his program due to the relevance they have in football. On top of that, he also has a more traditional strength based program for the gym, which he does to maintain an overall fitness level of his body.

Close

Disclaimer: The information found on NewsBTC is for educational purposes only. It does not represent the opinions of NewsBTC on whether to buy, sell or hold any investments and naturally investing carries risks. You are advised to conduct your own research before making any investment decisions. Use information provided on this website entirely at your own risk.

Related News

Ethereum Breaks Key Resistance In One Massive Move – Higher High Confirms Momentum

Ethereum Breaks Key Resistance In One Massive Move – Higher High Confirms Momentum

Ethereum has finally broken above the long-watched $2,000 resistance level—and it didn’t just edge past it, it blasted through with...

Sebastian Villafuerte 6 hours ago
4 Criptomonede Alternative de Top de Cumpărat Acum

4 Criptomonede Alternative de Top de Cumpărat Acum

Drumul către redresare al XRP-ului câștigă viteză, dar mai multe altcoin-uri promițătoare atrag atenția datorită potențialului lor de creștere rapidă....

newsbtc 7 hours ago
Rumble to Launch Tether-Collab Crypto Wallet in Q3 2025. Here’s Why the Best Wallet Token Could Explode

Rumble to Launch Tether-Collab Crypto Wallet in Q3 2025. Here’s Why the Best Wallet Token Could Explode

Chris Pavlovski, Rumble’s founder and CEO, took to X to announce the launch of a Bitcoin and stablecoin wallet. As...

Krishi Chowdhary 8 hours ago
Load More

Reason to trust

Strict editorial policy that focuses on accuracy, relevance, and impartiality
Created by industry experts and meticulously reviewed
The highest standards in reporting and publishing
How Our News is Made

Strict editorial policy that focuses on accuracy, relevance, and impartiality

Ad discliamer

Morbi pretium leo et nisl aliquam mollis. Quisque arcu lorem, ultricies quis pellentesque nec, ullamcorper eu odio.

Related News

Dogecoin

Dogecoin Price Continuation Shows Rebound, But Resistance Is Mounting At $0.205

Scott Matherson 1 hour ago
Bitcoin news Scaramucci

Sovereigns Are Buying Billions Of Bitcoin, Says Anthony Scaramucci

Jake Simmons 3 hours ago

4-те най-добри алткойна за закупуване в момента: Solaxy, Bitcoin Bull, MIND of Pepe и Best Wallet Token

newsbtc 4 hours ago

Premium Sponsors

Top Brands

Press Releases

  • BTC breaks through $100,000 again – SIX MINING users...

    6 hours ago
  • HJB Miner: High-return AI mining, earning huge profits

    8 hours ago
  • Gate.io Releases Latest Proof of Reserves Report: Total...

    8 hours ago
  • From Zero to $100K: How Average XRP Investors Are Making...

    11 hours ago
  • Analysis of The Top 7 Cloud Mining Sites in 2025; Earn Over...

    11 hours ago

Newsletter

Be the first to get the latest important crypto news & events to your inbox.

  • This field is for validation purposes and should be left unchanged.

About Us

NewsBTC is a cryptocurrency news service that covers bitcoin news today, technical analysis & forecasts for bitcoin price and other altcoins. Here at NewsBTC, we are dedicated to enlightening everyone about bitcoin and other cryptocurrencies.

We cover BTC news related to bitcoin exchanges, bitcoin mining and price forecasts for various cryptocurrencies.

Disclaimer: The information found on NewsBTC is for educational purposes only. It does not represent the opinions of NewsBTC on whether to buy, sell or hold any investments and naturally investing carries risks. You are advised to conduct your own research before making any investment decisions. Use information provided on this website entirely at your own risk.

Company

  • About Us
  • Advertising
  • Contact Us
  • Privacy Center

Social

© 2025 NewsBTC. All Rights Reserved.

  • Cryptocurrency News
    • Bitcoin News (BTC)
    • Ethereum News (ETH)
    • Ripple News (XRP)
    • Shiba Inu News (SHIB)
    • Cardano News (ADA)
    • Dogecoin News (DOGE)
    • Solana News (SOL)
    • Litecoin News (LTC)
    • Avalanche News (AVAX)
    • Polygon News (MATIC)
  • Crypto Prices
    • Binance Coin (BNB) Price
    • Bitcoin (BTC) Price
    • Cardano (ADA) Price
    • Chainlink (LINK) Price
    • Dogecoin (DOGE) Price
    • Ethereum (ETH) Price
    • Litecoin (LTC) Price
    • Polkadot (DOT) Price
  • Crypto Resources & Directory
  • All Crypto
  • Play Games
  • Casinos
Advertise

© 2025 NewsBTC. All Rights Reserved.

This website uses cookies. By continuing to use this website you are giving consent to cookies being used. Visit our Privacy Center or Cookie Policy.