Bitcoin BTC price sentiment is reportedly bearish, and the king of cryptocurrency Bitcoin (BTC) can face severe downtrend according to a BitMEX report.
A Twitter user, going by the name ‘Rptr45’, has taken notice of BitMEX, with an extended period of its somewhat subdued funding rates.
He indicated that the company had not had any changes other than it not having moved by more than -0.001%-0.001% for over twelve days, making it the longest streak thus far.
0/ Bitmex is on track for its 12th straight day where the funding rate hasn't moved by more than -0.001%-0.001%. This is the longest streak since 12 days from 2/4-2/16/19 and prior to that 17 days from 10/14-10/30/18. We haven't seen any other period >8 days which was 7/29-8/5/19 pic.twitter.com/WNNhNiZlom
— Rptr45 (@Rptr45) October 16, 2019
BitMEX is a cryptocurrency trading platform, allowing its customers to make interest to encourage more vigorous exchange. In case of a diminished US Dollar supply, BTC is shorted instead (and vice versa). In this way, users earn funding on these exchanges.
Even though the Twitter user had identified the extensive muteness in the rates, past experience highlights that traders ought to expect the volatility of BTC to change in either direction.
A previous example quotes how the Bitcoin BTC price plummeted by more than thirty-six percent (36%) one month after its seventeen-day long period of a subdued funding rate.
Bitcoin BTC price despondency
Omkar Godbole, who is an analyst by profession reasoned that Bitcoin is currently undergoing great selling pressure, as the Bitcoin BTC price is now lingering below the eight thousand dollars ($8000) mark.
Reportedly one of the finest BitMEX traders who claimed he was waiting rather impassively for the prices to drop to six thousand dollars again.
History predicts the rise in rates owed to the ‘bull market.’ However, the black swan market crashes seemed to alter previous notions of investors not being able to buy the quart-digit Bitcoin any longer.
Per Elliot’s wave theory, Bitcoin price could fall to a comparatively low amount of fourteen hundred dollars in a case falling share prices come to play.
At the moment, traders are uncertain whether the bull market is still set in motion, but seemed rather obvious when it increased by two hundred percent during the months of April-June.
Bitcoin BTC price and dominance
Twitter analyst Rptr45, however, suggests that the company owed to their lack of dominance in the market, might not be the heralds of volatility.
1/ If we look at $BTC performance post periods of muted moves in funding rate & low vol periods there's a big move either way (February to the upside last October to the downside). Interestingly enough even last Oct the initial one week move was slightly positive. pic.twitter.com/k0j1w1nTwX
— Rptr45 (@Rptr45) October 16, 2019
In July, a report by Bloomberg stated that the United States Commodity Futures Trading Commission initiated an inquiry into the exchange, which could potentially cause them to make room for improvement.
Furthermore, the threat by Binance is prevalent. Even though the exchange has proven itself to be a strong competitor, it appears that it may start to fall short of its former title of ‘best in the market.’
