After another dip into negative territory, BTC's funding rate has once again reversed upward—mirroring the pattern observed in previous instances this year. Just like the last few times, the 72-hour MA/EMA/WMA turned back from the oversold zone (blue highlighted area), now supported by a clear yellow-blue-black signal pattern. Historically, this setup has preceded strong price recoveries, and the current bounce may suggest another wave of position unwinding from over-leveraged shorts. With funding still below the "TOO-BUY" zone, this could signal that derivatives sentiment hasn't overheated yet, leaving room for further upside.

Written by nino