Bitcoin Funding Rate Flips Again And History Says A Rally Is Around The Corner
Bitcoin's price has decreased by 2.3% in the last 24 hours, trading around $107,205, which is 4.1% below its all-time high of over $111,000. Analysts observe a potential price rebound pattern in the funding rate, which briefly dipped into negative territory before reversing, historically aligning with price recoveries. The funding rate remains below levels indicating excessive bullish sentiment, suggesting traders are not overly confident, allowing for potential upside. Analysts note that when funding rates turn negative and then rise, it often indicates the unwinding of bearish positions, creating buy pressure. Additionally, Binance's share of global trading volume is recovering, indicating stable market liquidity. A drop below 30% in Binance's volume could lead to fragmented liquidity and increased volatility.
