Bitcoin Regains $90K With Funding Rates Indicating Momentum Toward $93K

NewsBTC
Updated
Mitrade
coverImg
Source: DepositPhotos

Bitcoin has finally reclaimed the psychologically $90,000 level once again following a recent period of significant correction that brought it to trade as low as $74,000 in recent weeks.


So far, BTC has now steadily rebounded, rising by 13.1% in the past two weeks to currently trade at $90,279, marking a 3.3% increase in the past day.


This price movement has coincided with notable changes in derivatives data and on-chain behavior. CryptoQuant analysts have particularly pointed to the rise in funding rates on Bitcoin futures, alongside diverging actions between long-term and short-term holders.


Bitcoin Funding Rate Reversal Suggests Further Upward Move


CryptoQuant analyst known as ShayanBTC has drawn attention to the recent trend in Bitcoin futures funding rates, which have rebounded sharply following the market’s prior correction.


According to his analysis, the simultaneous decline in both price and funding rates during the sell-off pointed to a reduction in speculative positioning. This pattern bears resemblance to conditions between March and September 2024—a period marked by sideways movement before a notable rally.


Bitcoin funding rates on all exchanges.


Now that funding rates are rising again, it suggests that traders are becoming more aggressive in opening long positions. This shift may indicate growing confidence in continued upside potential.


If this trend sustains, Shayan notes that Bitcoin could test the $93,000 resistance level, a key area to watch before any attempt to challenge its all-time highs.


Funding rates are often viewed as sentiment indicators within the derivatives market, with positive rates reflecting increased demand for long exposure among traders.


Long-Term Holders Accumulate as Short-Term Participants Exit


A separate analysis from another CryptoQuant analyst, IT Tech, highlights a clear divergence in the behavior of different investor groups. Long-term holders (LTHs), defined as those holding BTC for more than 155 days, have resumed net accumulation for the first time since the last local market peak.


This shift suggests that experienced participants are beginning to reposition, potentially in anticipation of a broader recovery. LTH activity is typically associated with strategic investment decisions rather than short-term trading.


Bitcoin long term holder net position change.


In contrast, short-term holders (STHs) continue to exit the market, with net position change data showing negative outflows. These movements are often driven by immediate price action and short-term volatility, and such capitulation has historically coincided with local market bottoms.


The combination of renewed LTH accumulation and STH exits may point toward the early stages of a re-accumulation phase—a setup that has previously supported future upward momentum in Bitcoin’s price.


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 Price Forecast: BTC ends Q2 with 30% gains, eyeing fresh record high as ETF inflows surgeBitcoin (BTC) is hovering around $108,000 at the time of writing on Monday after gaining more than 7% last week.
Author  FXStreet
12 hours ago
Bitcoin (BTC) is hovering around $108,000 at the time of writing on Monday after gaining more than 7% last week.
placeholder
XRP Price Springs Higher — Rally Reignited with Bullish MomentumXRP price started a steady increase above the $2.120 zone. The price is consolidating and might aim for a move above the $2.220 resistance.
Author  FXStreet
16 hours ago
XRP price started a steady increase above the $2.120 zone. The price is consolidating and might aim for a move above the $2.220 resistance.
placeholder
Meme Coins Price Predictions: DOGE, SHIB, PEPE hit crucial crossroads, eye further gainsMeme coins, such as Dogecoin, Shiba Inu, and Pepe, performed remarkably well last week, with a swift recovery reaching a high point on Sunday.
Author  FXStreet
16 hours ago
Meme coins, such as Dogecoin, Shiba Inu, and Pepe, performed remarkably well last week, with a swift recovery reaching a high point on Sunday.
placeholder
Solana Price Forecast: SOL breakout fuels optimism amid ETF buzzSolana (SOL) price trades around $151 at the time of writing on Monday, after breaking above its descending trendline last week, suggesting an upward trend ahead.
Author  FXStreet
16 hours ago
Solana (SOL) price trades around $151 at the time of writing on Monday, after breaking above its descending trendline last week, suggesting an upward trend ahead.
placeholder
Top 3 Price Prediction Bitcoin, Ethereum, Ripple: BTC teases all-time high, ETH and XRP gear up for breakoutBitcoin (BTC) price is hovering around $108,500 at the time of writing on Monday, just 3% shy of its all-time highs.
Author  FXStreet
18 hours ago
Bitcoin (BTC) price is hovering around $108,500 at the time of writing on Monday, just 3% shy of its all-time highs.
Real-time Quote