Why Traders Turned Bullish Despite BTC $10.7K Price Hike

Analysts are now cautiously bullish when it comes to Bitcoin price as it soared 6% to $10,750. Even after this price hike, various traders are still turning bullish.

Furthermore, the price of Bitcoin today suddenly climbed by 6 percent to as high as $10,743 from $10,136.

Analysts are now becoming cautiously bullish for many reasons after this firm 24-hour rally. However, the question is, will Bitcoin price manage to enter the $11K mark any time soon?

The U.S. dollar’s recent weakness, negative funding rates, and BTC whale activity are the factors that seem to be lifting investor sentiment.

Funding rates are neutral or negative at most exchanges

As of the moment, the price is lingering beyond $10,000. However, Bitcoin’s funding rate in many futures exchanges is either negative or neutral.

Bitcoin futures exchanges are using the funding. This is to make sure that it disincentivizes the majority of the market and that there is balance so that the market would not sway to one side for a long period.

A well-known pseudonymous trader, also known as “DonAlt”, shared his sentiment on a recent tweet. He said it is weird to see sentiment bearish along with negative funding rates. He stated:

price hike

Some top whales which are likely moving their holdings off-exchange match with the overcrowded Bitcoin market with short contracts,

Optimistic whale activity

A group of on-chain analysts who track crypto whale activity, Whalemap, stated that on September 23, top buyers have moved their Bitcoin.

The move of those top buyers has been a catalyst for Bitcoin. They said:

The dollar weakens

it can’t be denied that the number of COVID-19 cases in the U.S. is still going up. Because of this, lawmakers are being concerned about the future of a much-needed stimulus package. Moreover, this is leading the strategists to predict that the U.S. dollar would become weak.

A full-time trader at the Amsterdam Stock Exchange, Michael van de Poppe, stated that $10,700 to $10,800 is possible for Bitcoin. He discussed: