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3 key Bitcoin price metrics signal this ‘healthy’ rally has room to run

A stable funding rate paired with a record-high $20.3 billion open interest on BTC futures suggest that the current rally has room to extend higher.
After hitting a $43,000 local low on Feb. 28, Bitcoin (BTC) price rallied 28% to retake the $57,000 level on Mar. 10. As the Feb. 21 to Feb. 23 massive $5.9 billion liquidations caused by excessive long leverage seem long gone, futures contracts reached a $20.3 billion all-time high.This time, as Bitcoin rallied to $57,000, there seems to be no signs of retail FOMO (fear of missing out) buying, at least from the perspective of futures and volume indicators. While the funding rate stabilized at a neutral level, spot volumes stagnated, signaling that the recent growth in the open interest on futures is healthy.BTC futures open interest in USD. Source: BybtAs shown above, the aggregate futures open interest on BTC has risen to a new all-time high at $20.3 billion. This event is usually perceived as bullish, even though longs and shorts are matched at all times. However, a yellow flag should be raised whenever an increase of this metric is followed by a high funding rate on perpetual futures. The funding rate is neutral for nPerpetual futures are the preferred instrument for retail leverage traders due to their liquidity and hassle-free expiry date management.To keep a balanced risk-exposure, derivatives exchanges charge either perpetual futures longs (buyers) or shorts (sellers) a fee every eight hours. Known as the funding rate, this indicator will turn positive when longs are the ones demanding more leverage.Longs …
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