Bitcoin’s price may be due for another correction despite a strong recovery from its weekend dump to $61,000, according to analysts at CryptoQuant.
In a community “quicktake” posted on Monday, Bitcoin and Ethereum trader GAAH noted that the prevailing bullish market sentiment may be getting too hot based on information from the perpetual futures market.
Is Bitcoin Still Overheated?
As the analyst noted, average 30-dy funding rates remain high for Bitcoin, even after its latest price dump. Their current level mirrors that during Bitcoin’s 2021 all-time high, which today serves as the digital currency’s “greatest resistance ever.”
“The price is in a defined channel with around 20% expansion/retraction, an ideal scenario for large players to set up large positions,” wrote GAAH.
The last time Bitcoin funding rates were in an equally significant bearish position was in late 2022, when Bitcoin’s price was just 25% of what it is today. Since then, the asset has experienced
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