The Bitcoin price BTC surged above 19,500 briefly on Dec. 15, reaching as high as19,570 on Binance. However, BTC then dropped to 19,050 within three hours, recording a sudden 2.5 pullback. Bitcoin spiked to around 19,600 because of the momentum of its relief rally and negative futures market funding rates. But, it rejected the same level it broke down from since November due to the selling pressure from whales.
As Cointelegraph reported on Dec. 12, technical indicators showed BTC was oversold after Bitcoin dropped below 17,600. The 4hour candle chart saw a bullish divergence and a TD9 buy indicator, signaling that selling pressure was exhausted.
Bitcoin price quickly recovered above 18,000 and continued its run past 18,300. BTC then breaking the whale cluster key resistance level at 18,800 further boosted its momentum. Buoyed by the relief rally, Bitcoin continued to soar, eventually surging to as high as 19,570 across major exchanges.
The futures funding rates across Binance Futures and other major platforms turned negative as Bitcoin began to recover above 18,000. The funding rate of Bitcoin futures contracts turns negative when there are more shortsellers than buyers. This means the likelihood of a short squeeze increases, which could cause buyer demand to suddenly spike. Although the funding rate was negative for a brief time since Bitcoins funding rate rarely turns negative, it was indicative of aggressive selling.
A pseudonymous trader known as Byzantine…