Bitcoin Funding Rate Turns Negative for Seventh Time in One Year, Signaling Potential Bull Run
On February 5th, as indicated by CryptoQuant's data, Bitcoin's funding rate has turned negative for the seventh time within a year. Historically, the previous six occurrences of a negative funding rate have indicated a strong bullish reversal for BTC. This indicator reflects the cost of holding leveraged positions in perpetual futures contracts, suggesting that traders have become overly bearish and serving as a signal of a local bottom, which often precedes a significant rebound. If history is to repeat itself, the market may soon shift to a bullish trend. Currently, traders are closely monitoring the liquidity level below $98,000 and consider $100,000 as a strong support to initiate the first step of price discovery. Breaking through this level could trigger increased buying pressure. To fully restore the bullish momentum and change market sentiment, BTC would need to regain the key level of $103,600. (bitcoinist)
