02-05-25

BTC 4-hour chart outlook: Cautiously Optimistic

Fear and Greed: 67 (Greed), yesterday 53 (Neutral)

BTC Dominance: 64.92% Dominance has increased from yesterday

Price action: Price is up about 1% from the close of yesterday and currently in a strong resistance zone.

Premium Index: PI has decreased since yesterday and currently at -0.055 %.

Funding Rates: FR has increased since yesterday and currently at 0.0007 %.

Open Interest: OI is at $44 B which has decreased from yesterday

Volume: Vol. is at $23.8 B which has decreased from yesterday

To conclude: An increase in funding rates and dip in premium index signals cautiously optimistic sentiment among traders. However, the market is dynamic and this sentiment may quickly change to risk off. Decrease in trading volume signals reduced liquidity in the market, coupled with reducing open interest, suggests reduction in the likelihood for significant price swing for the short term, until market conviction strengthens.