Market Analysis: BTC Traders’ Financing Costs Soar, Prices Will Continue to Retreat

According to analysts, BTC prices have fallen after rising, and have failed to hold the $60,000 mark in the short term. Whether BTC will continue to retreat at this time depends on the overall financing rate performance of the market.

Judging from the overall trend of the financing rate recovery, the difficulty of BTC's short-term price recovery is undoubtedly increasing. Moreover, the difficulty of this price increase is very similar to that in early January and late February. The financing rate has risen sharply to 0.1026, indicating that BTC has encountered a very strong resistance level.

Looking back at the two important price pullbacks in 2021, both were related to the rebound in financing rates. The financing rate value this time was lower than 0.116 on January 10 and 0.154 on February 9. However, the value is still running at a high level.

In terms of trading volume, the volume of BTC shrank during the rebound and decline, which was manifested as a net outflow of funds to USDT and USD. This shows that investors fled in the short term and shorts dominated the market changes.

Mainstream currencies such as ETH, DOT, UNI, BNB, and ADA have not reached new highs. This shows that at this stage of the market development, the upward momentum of mainstream currencies has weakened. Especially after BTC entered the adjustment state, the trend of mainstream currencies is not optimistic. Therefore, the first thing to do in terms of operation is to pay attention to the adjustment risk.