Bitcoin is currently testing the critical support level around $95,000 after failing to hold at the symbolic $100,000 mark, which has failed to cushion the prevailing bear market. Despite the world’s leading cryptocurrency struggling to reclaim its six-figure value, recent on-chain data indicates a noteworthy increase in bullish bets being placed on Bitcoin.
Divergence In Funding Vs Price Indicative Of Aggressive Positioning
In a recent analysis, the consistent upward trend in Bitcoin’s Funding Rate has captured the attention of market watchers, with data suggesting this positivity has persisted even as the price slipped from notable highs above $110,000 down to approximately $96,000. Over the past month, funding rates have remained within the range of 0.003% to 0.008%, highlighting a bullish sentiment among traders.
The analysis notes that this divergence—where funding rates remain positive amidst declining prices—demonstrates a resolve among traders to maintain long positions despite bearish market conditions. Historically, such protracted periods of positive funding rates are indicative of aggressive bullish stances, as leveraged traders often seek to capitalize on perceived dips to optimize their returns.
However, this aggressive positioning carries inherent risks, especially in a clearly bearish context. Elevated funding rates can lead to a fragile market environment where any significant volatility might trigger mass liquidations of these leveraged positions. This scenario can result in what is known as a long squeeze—a dramatic decline caused by forced sell-offs and increasing panic among investors.
The analyst also pointed out interesting comparisons with market conditions seen in late 2024 and early 2025, noting that while current funding rate spikes are notable, they do not reach the extremes of those earlier periods. This suggests that the current market, while treading on a precipice, is not overly exhausted or overheated.
If Bitcoin’s funding rates continue to trend upwards while the cryptocurrency remains below key resistance levels, the likelihood of increased market volatility rises. Such movements could trigger further liquidation events. Nevertheless, the sustained growth in funding rates may also reflect a robust confidence in Bitcoin’s long-term prospects. The increase in bullish bets signals an optimistic sentiment among investors, many of whom anticipate a significant recovery ahead.
Bitcoin Price At A Glance
As of press time, Bitcoin is valued at approximately $95,371, according to CoinMarketCap data, which reflects a minimal increase of 0.19% over the last 24 hours.
While the market appears volatile, the ongoing positivity in funding rates suggests that many investors are still ready to back Bitcoin, reinforcing the argument that the cryptocurrency may be on the cusp of a significant turnaround.
