Rising funding rates on Binance signal a shift in Bitcoin market sentiment.

Arab Chain researchers have noted a noticeable shift in sentiment among Bitcoin traders. This is reflected in the dynamics of funding rates on the Binance platform. After mid-September, this indicator initially fell to negative -0.0014 at a price of approximately $115,000 per BTC. This movement coincided with a drop in prices from $117,000 and signified either a mass closure of long positions or an aggressive increase in leveraged short positions. All of this signaled a loss of short-term confidence in the uptrend.

However, a few days later, funding rates reversed, rising back into positive territory to 0.0067, when Bitcoin was trading around $113,000. This dynamic is considered not just a technical change, but an important indicator signaling the psychology of market participants, particularly in the perpetual futures sector.

Experts explained that the shift in funding rates from negative to positive indicates that traders are returning to margin longs and expecting a price rebound. This signals the beginning of a cautious increase in optimism among participants who were previously forced to close their positions or reduce their Bitcoin exposure.

Analysts note that this situation often precedes a short squeeze. With a sharp rise in prices and a simultaneous increase in funding rates, covering short positions can increase buying pressure and accelerate market growth. This makes a return to positive territory a particularly important signal of a possible reversal. However, without confirmation of price growth, such a scenario may only indicate short-term speculative activity. In such conditions, the market remains vulnerable to a quick correction unless real liquidity or a technical breakout occurs.

Source: cryptonews.net