Bitcoin Funding Rate Turns Negative for Seventh Time in One Year, Signaling Potential Bull Run

BlockBeats News, February 5th, CryptoQuant indicator data shows that Bitcoin's funding rate has turned negative for the seventh time in a year. Historically, the previous six instances of a negative funding rate have signaled a strong bullish reversal for BTC. This indicator reflects the cost of holding leveraged positions in perpetual futures contracts, indicating that traders have become overly bearish and signaling a local bottom, which is often a precursor to a significant rebound.

If history repeats itself, the market may soon shift to a bullish trend. Currently, traders are closely watching the liquidity level below $98,000 and see $100,000 as a strong support to initiate the first step of price discovery. Breaking this level could trigger increased buying pressure. To fully restore the bullish momentum and change market sentiment, BTC would need to reclaim the key level of $103,600. (bitcoinist)