Bitcoin derivatives signal a BTC price reversal
There is a growing possibility of a “short squeeze” in the Bitcoin derivatives market, which could lead to a major rally to $BTC , as noted by K33 Research.
The funding rate of Bitcoin perpetual futures, which estimates how bullish or bearish speculators are, could signal a bullish BTC price reversal. Aug. 20 saw the lowest seven-day average annualized funding rate since March 2023, according to K33.
The cryptocurrency market has been cautious lately, with Bitcoin continuing to lose ground in August following its failure to stay above the $60,000 mark. Concerns that the U.S. government may be selling seized tokens have recently impacted the price of Bitcoin. Traders are also awaiting crucial comments from Federal Reserve Chairman Jerome Powell, whose indications of likely interest rate cuts could cause volatility.
