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

NewsBTC
Updated
Mitrade
coverImg
Source: DepositPhotos

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.

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.

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

Featured image created with DALL-E, Chart from TradingView

* The content presented above, whether from a third party or not, is considered as general advice only.  This article should not be construed as containing investment advice, investment recommendations, an offer of or solicitation for any transactions in financial instruments.

goTop
quote
Do you find this article useful?
Related Articles
placeholder
Bitcoin Edges Higher to $118.5K Amid U.S.–Japan Trade Optimism, but Stays RangeboundBitcoin posted modest gains in Asian trading on Wednesday, rising 0.5% to $118,582.7 as of 02:10 ET (06:10 GMT). The move was supported by improved global risk sentiment following news of a trade breakthrough between the United States and Japan.
Author  Mitrade
Yesterday 09: 00
Bitcoin posted modest gains in Asian trading on Wednesday, rising 0.5% to $118,582.7 as of 02:10 ET (06:10 GMT). The move was supported by improved global risk sentiment following news of a trade breakthrough between the United States and Japan.
placeholder
Bitcoin Reserves On Exchanges Hit Highest Level Since June 25 – Is BTC In Danger?As Bitcoin (BTC) continues to hover in the high $110,000 range, on-chain data suggests that a short-term price pullback may be imminent. That said, the broader market structure remains firmly
Author  NewsBTC
7 Month 22 Day Tue
As Bitcoin (BTC) continues to hover in the high $110,000 range, on-chain data suggests that a short-term price pullback may be imminent. That said, the broader market structure remains firmly
placeholder
Bitcoin Holders Are Taking Profits—But Is the Top Still Far Away?Bitcoin’s recent price movement reflects a pause in the broader uptrend, with the asset trading at $117,901 following a near 5% weekly decline. While the current downturn may signal a cooling
Author  NewsBTC
7 Month 22 Day Tue
Bitcoin’s recent price movement reflects a pause in the broader uptrend, with the asset trading at $117,901 following a near 5% weekly decline. While the current downturn may signal a cooling
placeholder
Bitcoin Price Consolidates—Is a Downside Correction on the Horizon?Bitcoin price is consolidating gains below the $118,000 resistance. BTC could start a downside correction if it breaks the $116,200 support zone. Bitcoin started a fresh decline after it failed to
Author  NewsBTC
7 Month 22 Day Tue
Bitcoin price is consolidating gains below the $118,000 resistance. BTC could start a downside correction if it breaks the $116,200 support zone. Bitcoin started a fresh decline after it failed to
placeholder
Top 3 Price Prediction: Bitcoin, Ethereum, Ripple – BTC nears all-time high, ETH eyes $4,000, XRP sets new recordBitcoin (BTC) price is trading above $120,000 on Friday, inching closer to its all-time high of $123,218. Ethereum (ETH) price has surged by over 20% so far this week, with bulls aiming for the $4,000 level next.
Author  FXStreet
7 Month 18 Day Fri
Bitcoin (BTC) price is trading above $120,000 on Friday, inching closer to its all-time high of $123,218. Ethereum (ETH) price has surged by over 20% so far this week, with bulls aiming for the $4,000 level next.
Real-time Quote