BTC Price History and Binance Bitcoin Futures: Here’s How They’re Connected

Blockchain analytics platform CryptoQuant has highlighted historical Bitcoin (BTC) price movements.

This came alongside a thorough look at the Binance Bitcoin Funding Rates metric from a long-term perspective.

Upon analyzing, CryptoQuant pointed out three critical phases during the 2020-2021 bull run. These phases hold prospects for today’s market trend.

Binance Funding Rates Historical Review

The first phase kicked off in July 2020 when Binance Bitcoin Funding Rates remained stable at 0.01 for weeks.

According to CryptoQuant analyst Burakkesmeci, there was a “calm before the storm” followed by a strong demand for Bitcoin. This drove the flagship cryptocurrency’s price from $9,000 to $12,000, and funding rates surged to 0.10.

By November of the same year, the second phase began.

In this phase, Bitcoin consolidated before climbing from the $12,000 range. Conversely, funding rates turned negative before flipping positive and reaching 0.08.

This was the beginning of Bitcoin’s rapid rise to $19,000. By December 16, 2020, which marked the start of the third phase, Bitcoin had exceeded its previous highs but held steady.

At this point, funding rates had rallied to 0.17. With Bitcoin trading above $60,000 during this period, the funding rates remained unusually high at around 0.10.

Today, Binance Bitcoin Funding Rates is at 0.01, hinting at a typical level for the next positive momentum. Analysts at CryptoQuant believe that the market has completed the first two phases of this bull cycle.

They are watching closely to see if the Binance Bitcoin Funding Rates will surpass 0.01 as it enters the third phase.

A value of 0.01 usually indicates calm markets, but when it rises above this level, it indicates increased volatility in the futures market.

Once there is a sustenance above 0.01, it usually suggests that spot market rallies are supported by futures market activity.

BTC Price on the Edge

Considering this trend highlighted by CryptoQuant, Bitcoin is now trading on the edge.

At the time of writing, BTC price was changing hands for $104,142.49, down by 1.89% in 24 hours. The Bitcoin price rally is marked with mild volatility as it enters a potentially temporary consolidation phase after breaking its ATH.

As highlighted, technical indicators showcase the readiness for a potential leap for the coin. As such, analysts are keeping watch on crucial metrics like the Binance Bitcoin funding rates.

A mild nudge in the futures market, marked by marginal growth in Open Interest, can trigger a rally toward the $115,000 mark.

Will Strategic Bitcoin Reserve Change the Course?

Several organizations, states, and countries are clamoring to launch their strategic Bitcoin reserves.

About a week ago, Oklahoma joined the list of states in the US that are considering legislation to permit the state to hold Bitcoin as an asset.

The Oklahoma bill suggests allocating state money to acquire and store Bitcoin. This, the lawmakers argue will help secure people’s purchasing value.

Also, New Hampshire has received a new bill proposing the creation of a Bitcoin reserve for the state treasury.

Should this pull through, New Hampshire will become one of the first US states to hold Bitcoin alongside traditional assets such as gold, silver, and platinum.

Should these moves become reality, Bitcoin may reclaim and form a new All-time-high (ATH).