While Bitcoin continues to consolidate within the $100K–$110K range, funding rates on Binance are steadily decreasing — a sign worth watching.
As BTC enters a bullish trend, the declining funding rates indicate that Binance users are increasingly opening short positions. In other words, many traders are not buying into the rally and are instead betting against it. This mismatch between price direction and market sentiment often leads to forced short liquidations or margin top-ups, adding fuel to the upward move.
Because Binance is the largest exchange by volume, the funding rate on this platform serves as a strong proxy for aggregate market sentiment.
Summary:
Short positions on Binance futures are increasing, signaling that many traders perceive the current rally as an opportunity to sell. However, as Bitcoin continues to rise, these shorts face growing pressure and are gradually forced out of the market — either through liquidations or margin calls. This process accelerates the bullish momentum, creating a feedback loop that pushes prices even higher.
Written by BorisVest
