- The world’s largest cryptocurrency exchange, Binance, may be indicating a local peak according to futures data.
- An analyst from on-chain analysis platform CryptoQuant has examined the futures movements of individual investors on Binance.
- The analyst, noting an increase in funding rates on Binance, emphasized that the increase in long positions could indicate a local peak.
Recent futures data from Binance, the world’s largest cryptocurrency exchange, suggests a potential local peak, as individual investors increase their long positions.
Analysis of Futures Data on Binance
An analyst from CryptoQuant, an on-chain analysis platform, has been examining the futures movements of individual investors on Binance. The analyst has drawn attention to an increase in funding rates on the exchange, and has emphasized that the increase in the number of long positions could be indicative of a local peak.
Implications of Increased Long Positions
The analyst has warned investors to be cautious, noting that similar patterns in the past have been followed by short-term declines. As Binance is one of the best exchanges with individual-based customers, this data suggests that individual investors have started to form long positions. Historically, an increase in long positions on Binance has often meant a local peak.
Market Reaction to US Non-Farm Payroll Data
The cryptocurrency market saw a significant surge following the release of US non-farm payroll data on Friday. This has also increased the appetite for long positions. According to CoinGecko data, Bitcoin has risen by 9% in the last 24 hours and is currently trading at $64,200.
Conclusion
The recent increase in long positions on Binance, as indicated by futures data, could be a sign of a local peak. Investors are advised to exercise caution, as similar patterns in the past have led to short-term declines. The cryptocurrency market, however, continues to show strength, with Bitcoin rising by 9% following the release of US non-farm payroll data.
