Bitcoin Soaring Yet Funding Rate in the Red: A Traditional and Uncommon Bullish Indicator Not to Overlook?
The price of BTC surpasses $90,000, yet the funding rate on Binance is in negative territory. Will BTC/USD reach $100K as traders flock in?
BTC is on a rise, trading at levels reminiscent of early March 2025. While this increase is remarkable, traders on Binance, the largest cryptocurrency trading protocol by number of clients, have not fully embraced it.
One analyst on X pointed out that the funding rate on Binance is still negative, indicating that, even with rising prices, there has not been a significant influx or BUY PANIC driving market demand.
CRYPTO HOLDER ON BINANCE IN DISBELIEF!
Despite Bitcoin’s daily performance nearing 5%, investors on Binance seem skeptical about the longevity of this rally.
As Bitcoin continues to rise, funding rates on… pic.twitter.com/l9PDV8IhtY
— Darkfost (@Darkfost_Coc) April 22, 2025
For seasoned traders monitoring market trends over the last few years, this divergence is not simply noise. It’s an indication that Bitcoin, along with altcoins, may be gearing up for a significant rally.
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The Contrarian Catalyst on Binance?
To fully grasp the significance of this, it’s essential to understand what funding rates signify in the crypto world.
Funding rates refer to the periodic payments exchanged between short and long traders in perpetual crypto markets. These rates not only help align the index with spot rates but also reflect crypto market sentiment.
When funding rates are positive, long traders compensate sellers, suggesting that buying the underlying asset is at a premium. Conversely, when rates are negative, as they currently are, sellers grant payments to buyers, indicating pessimistic sentiment and overall doubt.
Generally, funding rates dip into negative territory amid falling prices. However, they remain negative even as BTC shows an upward trend, crossing the $90,000 threshold.
(Source)
This situation on Binance indicates that traders are doubtful about the capacity of bulls to drive prices even higher.
Historically, the analyst mentions, this skepticism about bullish momentum often leads to substantial price rallies and renewed interest in various top cryptocurrencies to invest in. Furthermore, such situations are uncommon, according to historical price analysis.
Take Advantage of Uncommon BTC Price Signals?
In mid-October 2023 and early September 2024, funding rates were negative while prices rose, foreshadowing rallies that propelled BTC to new peaks.
Post-October 16, 2023, BTC surged from $28,000 to $73,000, and in September 2024, a similar signal appeared before BTC/USD skyrocketed from $57,000 to $108,000.
(BTCUSDT)
If history is an indicator, the present disconnect in BTC prices might set the groundwork for a further surge.
From the price chart, the local resistance appears at the psychological barrier of $100,000 and the all-time high of $109,000, which are immediate targets for traders.
There are signs that traders are prepared to elevate prices further.
An analyst on X highlighted that within the past 72 hours, over 57,000 BTC worth more than $5.3 billion in new positions have been established.
In the past three days, approximately 57,000 BTC positions were initiated in the futures crypto market, valued at $5.345B at the current rate. This marks the largest surge in liquidity in the previous year. pic.twitter.com/VE08w0ZvhQ
— Axel
This represents the most significant liquidity injection in the past year, suggesting that the movement above $90,000 could be propelled by institutional investment.
In addition, there is a notable increase in Bitcoin’s growth rate, a measure comparing current entry prices with averages.
First green spike – a sign the trading market has reached peak growth speed: the price is climbing quicker than the average entry cost of all previous holders, leading to a speculative premium. pic.twitter.com/0aa1dlm9J6
— Axel
This rapid growth indicates strong new capital inflows, with speculators keen to pay premiums well above historical norms for investment.
The increase in this measurement implies that Bitcoin might be in the early phases of a bull trading market, which could also channel funds toward some of the most exciting presales of 2025.
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Bitcoin Price Rallying But Funding Rate Is Negative
- Bitcoin climbs over $90K for the first time in more than a month
- Binance funding rate remains negative, indicating doubt
- Previously, such divergences have led to significant price increases
- Will BTCUSDT revisit $109,000?
The post BTC Rallying But Funding Rate Negative: A Classic and Rare Bull Signal Not to Miss? appeared first on 99Bitcoins.
