Bitcoin funding rates on Binance remain neutral, hovering near zero.
* Bitcoin funding rates on Binance have stayed close to zero, indicating a lack of excessive leverage among retail traders.
* Funding rates are periodic payments between long and short position holders in perpetual futures contracts.
* This neutrality is significant because it shows that retail traders are not aggressively opening leveraged long positions.
* Instead, the current stability suggests a healthier, more gradual upward trend, as the market isn’t overheated by excessive borrowing.
Continued Long Liquidations Below $108,500 and $107,500 :
* Binance Liquidation Delta chart, we see that long-side liquidations have intensified as soon as Bitcoin's price dropped below the $108,500 and $107,500 levels (highlighted with arrows).
* These liquidation clusters indicate that certain leveraged long positions remained and were liquidated as the price declined.
* Notably, the broader funding rates remained neutral, suggesting that these liquidations eliminated weaker hands while maintaining stable funding rates.
Buy/Sell Pressure Delta: Still Far from Key Levels
* The Bitcoin: Buy/Sell Pressure Delta (90) chart further supports the narrative of cautious market participation.
* The indicator has failed to reach even the first significant level of 0.02, a threshold it last touched during December’s peak.
* This suggests that despite recent price increases, the market’s buy pressure is still relatively underdeveloped compared to historical peaks, leaving further room for gradual upward movement without overheating.
Conclusion: Low Funding Rates Signal Sustainable Growth
* The persistently low funding rates on Binance serve as a strong indicator of potential sustained upward movement.
* When paired with the current Buy/Sell Pressure Delta (90), which hasn’t yet reached prior peak levels, the data suggests there’s still meaningful upside potential in Bitcoin’s price.
Written by Amr Taha
