Bitcoin’s funding rate has once again flipped upward after dipping into negative territory, echoing a familiar pattern observed throughout the year. According to technical analyst, shared by CryptoQuant, this reversal could mark the start of yet another recovery phase, supported by a recurring signal pattern and favorable market positioning.
The chart reveals that the 72-hour moving average (along with its exponential and weighted counterparts) has bounced from an oversold zone, visually highlighted in blue. This movement has now aligned with a distinct yellow-blue-black signal pattern, which has historically preceded strong upside moves in BTC’s price.
The funding rate, which measures the cost of holding leveraged positions in the futures market, remains below the so-called “TOO-BUY” zone.
This indicates that sentiment in derivatives markets hasn’t overheated—potentially leaving room for further upside as shorts unwind and traders re-enter long positions.
Historically, such conditions have created fertile ground for sharp price rebounds. As seen in the provided chart, each time this signal pattern has emerged within deeply negative funding zones, Bitcoin has posted notable recoveries.
With the latest bounce already underway, the data suggests another sentiment-driven rally could be forming—especially if derivative traders continue to close over-leveraged short positions. If this pattern continues to hold, Bitcoin may be gearing up for another leg higher in the coming days.
Kosta Gushterov
Reporter at Coindoo
Kosta has been a part of the team since 2021 and has solidified his position with a thirst for knowledge, incredible dedication to his work and a “detective-like” mindset. He not only covers a wide range of trending topics, he also creates reviews, PR articles and educational content. His work has also been referenced by other news outlets.
Source: https://coindoo.com/market/btc-funding-rate-reverses-from-negative-territory-is-another-bounce-underway/