Bitcoin Targets $58K Amid Crypto Market Recovery and Potential Short Squeeze, Says Analyst

Bitcoin nears $58,000 as crypto markets recover from recent dips. K33 Research notes that negative funding rates, a rare occurrence, signal a possible bottom and suggest a significant rally ahead.

Bitcoin (BTC) is eyeing the $58,000 mark as the broader crypto market continues to recover from last week’s steep plunge. BTC has risen by 1.7% in the past 24 hours, marking a nearly 10% increase from Friday’s low, with other major cryptocurrencies, including Ether (ETH) and Solana (SOL), also gaining 1.5%. Altcoin leaders such as Toncoin (TON), Artificial Superintelligence Alliance (FET), and Internet Computer (ICP) posted the biggest gains, advancing between 5% and 8%. The CoinDesk 20 Index, which tracks the performance of the 20 largest crypto assets, climbed by 1.3% to 1,835, with 16 of its constituents advancing.

This rally comes amid broader market uncertainty, with speculation that digital assets may not feature heavily in the upcoming U.S. presidential debate between Donald Trump and Kamala Harris. However, the stark contrast between the two parties’ stances on cryptocurrency regulations adds significance to the election’s potential impact on crypto prices. According to Aurelie Barthere, principal research analyst at Nansen, the ongoing uncertainty around the November election is likely to weigh on crypto prices in the short term. Still, today’s debate could bring temporary relief if Harris’ lead in the polls diminishes.

In the meantime, a report by K33 Research suggests that the market is potentially primed for a significant rally. Analysts Vetle Lunde and David Zimmerman pointed to the 30-day average funding rates for perpetual swaps, which have slipped into negative territory—a rare occurrence that has historically coincided with a market bottom. This marks only the sixth time since 2018 that funding rates have reached such levels.

The K33 report explains that when monthly funding rates turn negative, it has often preceded strong market rebounds. Based on previous instances where this occurred, the average return in the following 90-day period was 79%, with a median return of 55%. This indicator suggests that the crypto market may be on the verge of a notable upward move in the coming weeks and months, despite investor concerns about potential downside risks.

As the market eyes these metrics, Bitcoin’s price recovery towards $58,000 could mark the beginning of a broader bullish phase, especially as funding rates and other technical indicators point toward a possible short squeeze that could fuel further price gains.

Our creator. creates amazing NFT collections! 
Support the editors - Bitcoin_Man (ETH) / Bitcoin_Man (TON)

Pi Network (Guide)is a new digital currency developed by Stanford PhDs with over 55 million participants worldwide. To get your Pi, follow this link https://minepi.com/Tsybko and use my username (Tsybko) as the invite code.

Binance: Use this link to sign up and get $100 free and 10% off your first months Binance Futures fees (Terms and Conditions).

Bitget: Use this link Use the Rewards Center and win up to 5027 USDT!(Review)

Bybit: Use this link (all possible discounts on commissions and bonuses up to $30,030 included) If you register through the application, then at the time of registration simply enter in the reference: WB8XZ4 - (manual)