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<div class="intro-text"> 
 Will Clemente, co-founder of Reflexivity Research, has predicted that Bitcoin’s price may be preparing for an upward trajectory. 
</div> 
In a <a style="color: #0000ff;" href="https://twitter.com/WClementeIII/status/1787820489739489318">social media post</a> published on May 7, Clemente suggested that Bitcoin is currently in a consolidation phase before potentially experiencing another “leg up.” 
Clemente cited two key trading indicators—the funding and three-month annualized basis rates–to support his analysis and prediction.&nbsp; 
<blockquote class="twitter-tweet"> 
 Did a nice look-through of the market for the first time in a week. 
 Funding rates &amp; Basis have both cooled off after briefly reaching negative readings while stablecoin supplies are rising again. Looks like we’re consolidating before the next leg up. <a href="https://t.co/OHLkMrTqUY">pic.twitter.com/OHLkMrTqUY</a> 
 — Will (@WClementeIII) <a href="https://twitter.com/WClementeIII/status/1787820489739489318?ref_src=twsrc%5Etfw">May 7, 2024</a>
</blockquote> 
<script async src="https://platform.twitter.com/widgets.js" charset="utf-8"></script> 
The funding rate is a tool used to understand how traders feel about the cryptocurrency market. Exchanges use this rate to ensure they are not taking on too much risk by balancing the number of people betting on Bitcoin going up (long positions) with those betting on it going down (short positions). 
On the other hand, the annualized basis rate metric is used to measure the cost difference between the price of Bitcoin in the spot market (the current market price) and the price of Bitcoin in the futures market (the price agreed upon for a future date). 
Clemente mentioned that both metrics have been recovering from negative readings recently. According to <a style="color: #0000ff;" href="https://www.coinglass.com/FundingRate">CoinGlass data</a>, the funding rate is currently at 0.0091%, having recovered from a negative rate of -0.0050% on May 4. A positive funding rate is positive usually suggests that more people are betting that Bitcoin’s price will go up.&nbsp; 
Meanwhile, some crypto stakeholders seem to share Clemente’s sentiment.&nbsp; 
<blockquote class="pullquote align-center">
 “Nice detective work! Sounds like the calm before the storm. Good luck on the next move!,” 
</blockquote> 
a pseudonymous crypto commentator, Crypto Empire, <a style="color: #0000ff;" href="https://twitter.com/Empire8x/status/1787820814122828242?t=CbRNpFIjfGCFkrCiEVvhTA&amp;s=19">noted</a> in response to Clemente’s post.&nbsp; 
Crypto trader Mister Crypto also wrote in a <a style="color: #0000ff;" href="https://twitter.com/misterrcrypto/status/1787834770178904139?t=d1GWfwRITW4yqB2XpTafJw&amp;s=19">social media post</a> on May 7 that they are “extremely bullish” about Bitcoin’s price, pointing to token funding rates. In their words:&nbsp; “The Bitcoin funding rates still remaining this low, while Bitcoin is bouncing makes me feel extremely bullish.”&nbsp; 
Bitcoin’s price is currently hovering around $62,000 in the 12 hours, according to <a style="color: #0000ff;" href="https://coinmarketcap.com/currencies/bitcoin/">CoinMarketCap data</a>.&nbsp; 
Disclaimer: This piece is intended solely for informational purposes and should not be considered trading or investment advice. Nothing herein should be construed as financial, legal, or tax advice. Trading or investing in cryptocurrencies carries a considerable risk of financial loss. Always conduct due diligence. 
&nbsp; 
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The post <a href="https://defi-planet.com/2024/05/bitcoin-price-analysis-analyst-suggests-optimistic-outlook-based-on-two-trading-indicators/">Bitcoin Price Analysis: Analyst Suggests Optimistic Outlook Based on Two Trading Indicators</a> appeared first on <a href="https://defi-planet.com">DeFi Planet</a>.

Bitcoin Price Analysis: Analyst Suggests Optimistic Outlook Based on Two Trading Indicators

DeFi Planet

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