Bitcoin's Negative Funding Rate Sparks Bullish Reversal Hopes

Bitcoin's funding rate has turned negative for the seventh time in a year, signaling a potential bullish reversal for the cryptocurrency. This indicator reflects the cost of holding leveraged positions in perpetual futures contracts and has historically preceded strong bullish trends in the Bitcoin market.

According to CryptoQuant data, the negative funding rate indicates that traders have become overly bearish, which often signals a local bottom and a potential rebound. If history repeats itself, the market may soon shift to a bullish trend.

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.