Bitcoin's price has reached approximately $110.7K with a Funding Z-Score of +1.24, indicating a sustained bullish trend but with risks of volatility.
What is the Funding Z-Score?
The Funding Z-Score is a measure of how current funding rates deviate from the norm. A +1.24 score signifies that funding is significantly above average, suggesting the market is supported by traders willing to pay more to maintain long positions.
Risks of High Z-Score
While the current funding data supports a bullish trend, high Z-Scores can indicate over-leveraging. If prices start to drop, this may lead to a wave of liquidations, exacerbating corrections.
Market Outlook
Increasing Z-Score with weak price momentum makes the market vulnerable to sharp corrections. Monitoring price changes and trader sentiment is crucial.
The Bitcoin market remains tense, and while bullish sentiment prevails, potential corrections upon price drops require careful observation.
