A brief outlook on funding rates

A-brief-outlook-on-funding-rates

Bitcoin has been recovering together with stocks mainly due to macroeconomic conditions going in the direction the Fed wants (lower inflation, lower demand but still strong enough for the economy to not be too affected — what they call a softish landing). On the other hand, Ethereum specifically has gained additional momentum with The Merge approaching.

Now regarding the funding rates, they have turned predominantly green in the last weeks, with less and less red bars. The latter have actually been quite reliable buying signals since we hit $24k for the first time. However, funding is still not holding as positive as July 18th-22th, so I personally consider there is still room to go up (at least until $26k).

On another note, my medium-term price expectation is somewhere between $28k and $32k, as I believe that’s the maximum pain price for bears and probably the invalidation point for most bearish setups.