Today, the Bitcoin (BTC) price jumped 6% from $ 10,136 to $ 10.743.

After this massive 24-hour meeting, analysts are now cautiously optimistic for a number of reasons, but will Bitcoin price exceed $ 11,000 anytime soon?

At the moment, the factors that appear to be increasing investor sentiment are negative funding rates, BTC whale activity and recent weakness in the US dollar.

At the moment, the level of Bitcoin financing on various futures exchanges is neutral or negative, despite the fact that the price is above $ 10,000.

Bitcoin futures exchanges use financing to balance the market and deny a lot of market incentives to prevent the market from swinging in one direction for an extended period of time.

If the vast majority of contracts are long-term or traders betting on an increase in the bitcoin price, they will have to pay short contract holders. The opposite is true if the market is dominated by the holders of the short contracts.

When the funding rate becomes negative, it means that most of the market is selling BTC. Usually, when funding rates remain below zero, it causes short-term pressure and an increase in the BTC rate. It can also be a sign that the short selling price is crowded, which increases the possibility of an increase.

A well-known trader known as DonAlt tweeted that it was “strange” to see low sentiment towards negative funding rates. He said:

“It’s very strange to see this kind of bearish sentiment with neutral or negative financing over $ 10,000. I don’t think I can remember a time when that happened before.”

The trader also indicated that he sees the $ 10,000 sales pressure absorbing. he added:

“Now I’m seeing a $ 10,000 takeover, and it looks like the derivatives are the only ones selling derivatives, and I’ve closed my short positions to see how it ends next week.”

The busy bitcoin market coincides with short contracts with the prospect of some leading whales dumping their assets from the exchange.

An optimistic whale activity
According to Whalemap, a group of network analysts that tracks humpback whale activity, the largest buyers moved BTC on September 23.

Analysts say that the big buyers transferring money were usually a bullish catalyst for BTC. They explained:

“Yesterday, the best buyers moved their coins. In my personal experience looking at these accounts, the next day we will go up the number of the biggest moves of buyers.”

The weakening of the dollar
As the number of COVID-19 cases rises in the US, lawmakers have been shocked about the future of the much-needed stimulus package, forcing policymakers to speculate on a weak dollar.

Before the first rally, Amsterdam Stock Exchange trader Michael Van de Pope said Bitcoin would likely receive between $ 10,700 and $ 10,800.

The trader stressed that if the dollar slowed down, the $ 11,200 to $ 11,400 range might be a reasonable target. he wrote:

We simply noticed it. It looks like it’s ready to test the range of $ 10,700-10,800 and maybe even $ 11,200-$ 11,400 if the dollar slows a bit.

Source: CoinTelegraph