Bitcoin Funding Rate Flips Again And History Says A Rally Is Around The Corner

bitcoin-funding-rate-flips-again-and-history-says-a-rally-is-around-the-corner
Bitcoin Funding Rate Flips Again And History Says A Rally Is Around The Corner

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Bitcoin’s price has declined slightly following recent gains, falling 2.3% over the past 24 hours to trade at approximately $107,205. This latest movement places the asset 4.1% below its all-time high of over $111,000 recorded last month.

Despite the short-term dip, some analysts see familiar signs in derivatives data that could point to the next phase of market movement.

Funding Rate Rebounds Signal Potential Upside for Bitcoin

According to recent insights shared by on-chain analyst “nino” on CryptoQuant’s QuickTake platform, Bitcoin may be repeating a funding rate pattern that has historically led to price rebounds.

The data shows the asset’s funding rate briefly dipping into negative territory before beginning to reverse, a pattern that has aligned with price recoveries earlier in the year.

Bitcoin funding rate.
Bitcoin funding rate. | Source: CryptoQuant

Nino’s analysis suggests this reversal, particularly the 72-hour moving averages exiting the oversold zone and producing a yellow-blue-black signal formation, could indicate a potential round of short position liquidations.

The funding rate, still below levels typically associated with excessive bullish sentiment, may also imply that traders have yet to become overconfident, leaving room for additional upside without immediate overheating in derivatives markets.

Nino’s observation focuses on market structure and derivative sentiment, highlighting how positioning in perpetual futures markets could precede notable spot price moves.

In particular, when funding rates turn negative and then begin to climb, they often reflect the unwinding of overly bearish bets by traders who shorted BTC at high leverage. As these traders are forced to close positions, the resulting buy pressure can act as a short-term catalyst.

This setup has played out multiple times earlier in 2025, and the current conditions suggest it may be occurring again. By keeping track of moving averages and sentiment zones, traders may interpret these signals as part of a broader cyclical trend.

Binance Volume Share Signals Key Trends in Market Liquidity

Separately, another analyst from CryptoQuant, Burak Kesmeci, addressed structural shifts in spot trading liquidity, particularly Binance’s share of global trading volume.

Kesmeci emphasized that Binance’s dominance remains an important barometer of institutional participation and overall market health. He explained that an increase in Binance’s spot volume share is often associated with higher liquidity and smoother price discovery.

Binance spot volume share compared to other exchanges.
Binance spot volume share compared to other exchanges. | Source: CryptoQuant

Conversely, if Binance were to fall below a 30% volume threshold, it could signal a move toward more “fragmented liquidity” across exchanges such as Coinbase or Upbit. Such shifts could lead to more volatility and less predictable trading behavior.

At present, Binance’s volume share is showing signs of recovery, suggesting that capital is still flowing through the exchange and supporting a relatively stable trading environment.

Bitcoin (BTC) price chart on TradingView
BTC price is moving upwards on the 2-hour chart. Source: BTC/USDT on TradingView.com

Featured image created with DALL-E, Chart from TradingView

Samuel Edyme

Meet Samuel Edyme, Nickname – HIM-buktu. A web3 content writer, journalist, and aspiring trader, Edyme is as versatile as they come. With a knack for words and a nose for trends, he has penned pieces for numerous industry player, including AMBCrypto, Blockchain.News, and Blockchain Reporter, among others.

Edyme’s foray into the crypto universe is nothing short of cinematic. His journey began not with a triumphant investment, but with a scam. Yes, a Ponzi scheme that used crypto as payment roped him in. Rather than retreating, he emerged wiser and more determined, channeling his experience into over three years of insightful market analysis.

Before becoming the voice of reason in the crypto space, Edyme was the quintessential crypto degen. He aped into anything that promised a quick buck, anything ape-able, learning the ropes the hard way. These hands-on experience through major market events—like the Terra Luna crash, the wave of bankruptcies in crypto firms, the notorious FTX collapse, and even CZ’s arrest—has honed his keen sense of market dynamics.

When he isn’t crafting engaging crypto content, you’ll find Edyme backtesting charts, studying both forex and synthetic indices. His dedication to mastering the art of trading is as relentless as his pursuit of the next big story. Away from his screens, he can be found in the gym, airpods in, working out and listening to his favorite artist, NF. Or maybe he’s catching some Z’s or scrolling through Elon Musk’s very own X platform—(oops, another screen activity, my bad…)

Well, being an introvert, Edyme thrives in the digital realm, preferring online interaction over offline encounters—(don’t judge, that’s just how he is built). His determination is quite unwavering to be honest, and he embodies the philosophy of continuous improvement, or “kaizen,” striving to be 1% better every day. His mantras, “God knows best” and “Everything is still on track,” reflect his resilient outlook and how he lives his life.

In a nutshell, Samuel Edyme was born efficient, driven by ambition, and perhaps a touch fierce. He’s neither artistic nor unrealistic, and certainly not chauvinistic. Think of him as Bruce Willis in a train wreck—unflappable. Edyme is like trading in your car for a jet—bold. He’s the guy who’d ask his boss for a pay cut just to prove a point—(uhhh…). He is like watching your kid take his first steps. Imagine Bill Gates struggling with rent—okay, maybe that’s a stretch, but you get the idea, yeah. Unbelievable? Yes. Inconceivable? Perhaps.

Edyme sees himself as a fairly reasonable guy, albeit a bit stubborn. Normal to you is not to him. He is not the one to take the easy road, and why would he? That’s just not the way he roll. He has these favorite lyrics from NF’s “Clouds” that resonate deeply with him: “What you think’s probably unfeasible, I’ve done already a hundredfold.”

PS—Edyme is HIM. HIM-buktu. Him-mulation. Him-Kardashian. Himon and Pumba. He even had his DNA tested, and guess what? He’s 100% Him-alayan. Screw it, he ate the opp.

Disclaimer: The information found on NewsBTC is for educational purposes only. It does not represent the opinions of NewsBTC on whether to buy, sell or hold any investments and naturally investing carries risks. You are advised to conduct your own research before making any investment decisions. Use information provided on this website entirely at your own risk.

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