Two key indicators for Bitcoin, the funding rate and the 3-month annualized basis rate, have recently cooled off, suggesting a potential bullish trend for the cryptocurrency.
The funding rate, which reflects trader sentiment, turned positive as long-position traders became more dominant, indicating their confidence in Bitcoin’s price increase.
The OI-weighted funding rate has recovered from a negative rate and is currently at 0.0091%. This low funding rate combined with Bitcoin’s price bounce is seen as a positive sign by traders. However, liquidation data indicates that futures traders still lean bearish and expect a near-term price drop.
Additionally, the annualized basis rate, which measures the cost difference between Bitcoin futures contracts and the actual price of Bitcoin, has increased to the higher end of the neutral range on major exchanges. Rates above 10% are generally viewed as a neutral-to-bullish signal by traders.
Source: COINTELEGRAPH
