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BTC price rallied 80% last time this happened

Bitcoin By
BTC Price Rallied 80% Last Time This Happened
BTC Price Rallied 80% Last Time This Happened

Takeaways:

  • Bitcoin’s funding rate briefly became negative towards the end of last month, which is a sign for an upcoming rally.

  • The short squeeze could be fuelled by the large number of short liquidations around $111 320.

  • BTC broke out from a bull’s-eye and is now targeting $117.500 according to new research.

BitcoinBTCIn late June the perpetual funding rate for ) futures sank into negative territory, during which time BTC’s price rose from under $100,000 to approximately $108,000.

BTC futures perpetual funding rate (7DMA). Source: CryptoQuant

The history of Bitcoin may show that a large price increase is imminent for Bitcoin.

BTC bulls may trigger a squeeze on shorts

A negative funding rate Short-position holders will pay traders who hold long positions to keep them open.

A negative rate of funding during an uptrend in prices can result in overcrowded short positions that are vulnerable. short squeeze.

Bitcoin saw similar rate changes in July 2023 and September 2024 that led to gains of 80% and 15%, respectively.

BTC futures perpetual funding rate (7DMA). Source: CryptoQuant

BTC Funding’s most recent return to positive territory is similar to those previous setups. It suggests that the bullish reset might have already taken place and the market may be gearing itself up for another leg higher.

Related: Bitcoin’s STH cost basis suggests $117K is the next stop for BTC price

This level is $111,320. According to a report by Investopedia, the BTC/USDT currency pair has seen the most liquidations predicted in the last three months. An estimated $520.31 millions in leveraged positions are at risk. CoinGlass data.

Heatmap of Binance BTC/USDT Liquidation (3 months). Source: CoinGlass

A short squeeze could be triggered by repurchasing short-term traders’ positions.

Bitcoin targets $117.500 after bull-flag breakout

Bitcoin technicals are showing a break out above the trendline upper of the bull flag pattern.

BTC/USD Daily Price Chart TradingView

The pattern, based on its measured movement, points towards a target of $117.500. This is in line with the head researcher at 10x Research. Markus Thielen’s $116,000 forecast End of July is approaching.

This article contains no investment recommendations or advice. Risk is inherent in every investment decision and trade. The reader should always do research prior to making a final decision.