Sub-30k dip unleashes the Bitcoin bears

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Jan 28, 2021

The bears are out in full force.

As $BTC dipped below $30k once again, the top coin’s fundamental data suggests a string of panic sell-offs, bearish sentiment and HODLer capitulation.

Good for BTC?

Let’s start by looking at Bitcoin-related market sentiment. According to our derivatives data, the perpetual contract funding rate on Bitmex has dipped to a 3-month low, and stands at -0.03% at the time of writing:

Bitcoin, Bitmex perpetual contract funding rate, past 6 months (Source: Sanbase)

The funding rate is a fee paid by one side of the perpetual contract to the other. In a word, when the funding rate is positive, the BTC longs pay the BTC shorts - and vice versa.

Although the longs dominated the boards for the first half of January, the last week has seen multiple forays into the negative funding rate

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Assets from this insight

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$ 46135.35

17.75%in last 7d