BTC trading indicators show that BTC is poised for a 62% Uprise: to understand whether the current price momentum mimics late September, traders should start by analyzing the Bitcoin futures contracts premium, which is also known as “basis.” Unlike a perpetual contract, these fixed-calendar futures do not have a funding rate, so their price will differ.

A trader can determine the extent of bullishness in the market by comparing the expenditure difference between futures and the normal spot market. Buyers’ overconfidence causes the three-month futures contract to trade at a 15% annualized premium or higher (basis).

For example, earlier in September, the basic rate fluctuated from 9% to 13%, showing confidence, while the 3-month futures premium was at 6.5 percent on Sept. 29, just before Bitcoin broke out over $45,000. In general, readings below 5% are considered bearish, therefore a 6.5 percent level in late September indicated investors’ lack of confidence.

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