By observing BTC financing rates, one can effectively gain insights into the sentiment direction of the Bitcoin market.
During the consolidation phase from March to October 2024, although financing rates occasionally rose briefly, they remained negative, indicating active bearish forces and insufficient market confidence.
This phenomenon may stem from individual investors engaging in short positions or from hedging demands to avoid downside risks.
Recently, Bitcoin made a push towards the resistance level of $95,000 and achieved a certain increase, yet financing rates turned negative again.
The divergence between rising prices and declining financing rates suggests that market participants may be preparing for a price correction or are locking in profits.
Historical experience shows that this situation often indicates short-term selling pressure, but similar phase adjustments could also become a key factor in driving a long-term bull market.
