Bitcoin's Negative Funding Rate Suggests Potential Bullish Reversal

According to Odaily, CryptoQuant's data reveals that Bitcoin's funding rate has turned negative seven times within the past year. Historically, the previous six instances of negative funding rates have indicated a strong bullish trend for Bitcoin. This metric reflects the cost of holding leveraged positions in perpetual futures contracts, suggesting that traders have become excessively bearish, which often signals a local bottom and a potential for significant rebound. If historical patterns repeat, the market may soon shift towards a bullish trend. Currently, traders are closely monitoring liquidity levels below $98,000, with $100,000 considered a strong support level to reignite price discovery. A breakthrough at this level could trigger increased buying pressure. To fully restore bullish momentum and alter market sentiment, Bitcoin needs to reclaim the $103,600 mark.