Bitcoin futures markets indicate a ‘major buying’ opportunity soon
Bitcoin futures funding rates – periodic payments between short and long traders – could be a sign of a future price correction for Bitcoin, which could present “major buying opportunities,” according to market analysts.
In a post shared on X on April 3, an analyst at crypto-analytics firm CryptoQuant reported that record-long positive Bitcoin futures funding volumes indicate “strong bullish sentiment.”
Futures funding rates are periodic fees that traders pay based on the difference between the price of the perpetual futures contract and the price of BTC.
If Bitcoin futures prices trade above the spot price, the long-term funding will short the rate. Conversely, if the futures price is trading below the spot, shorts will pay the funding amount over a longer period of time.
However, “Historically, such optimism precedes a price correction,” the analyst said before adding crypto sunmoon.
“The next downturn could provide a major buying opportunity.”
CryptoQuant Analyst ‘Maartunn' also notes the rising Coinbase Premium, which he says is “a sign that US institutions are buying Bitcoin.” This premium is the difference in price between Coinbase and international exchanges.
Earlier this week, crypto derivatives tooling provider GreeksLive said that Bitcoin's continued decline is “significantly depressing the crypto market, as fear spreads across the market and futures premium levels decrease.”
BTC fell by 9% last week, hitting a low of just under $65,000 on April 2. It currently stands at 10.5% below the March 14 high of $73,738 and could drop further, IG market analyst Tony Sycamore said.
In an April 4th post on X, the analyst predicted a drop to support around $60,000 or possibly lower.
“Tuesday's sell-off raises the possibility of BTC making another leg lower (at $60/58k support) to complete a three-wave correction from the $73,794 high before BTC resumes towards $80,000.”
Related: Bitcoin Pre-Half Correction Narrative Strengthens As BTC Falls Below $62K
Analyst and trader ‘Moustache' told his 112,000 followers on X: “It's completely normal to see some correction around BTC ATH.”
In the year It was the same in 2020, before adding, “After that, the ATH broke violently and a famous bull run continued.
BTC recovered 17% after falling to $61,500 in the week after its all-time high, then recovered to regain $71,500 in late March, before rebounding again in April.
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