Bitcoin Pullback Analyzed: Funding Rate Stabilizes as Leverage Liquidation Nears its End

According to a recent analysis from intotheblock, Bitcoin’s recent price decline on November 26th can be traced back to an elevated funding rate, which highlights the prevalence of over-leveraged positions within the market. This situation often prompts significant market volatility, as traders seek to adjust their positions. However, the latest data suggests a positive shift; the funding rate is now stabilizing and has largely rebounded to typical levels. This normalization indicates that the phase of leverage liquidation could be approaching its conclusion, thereby reducing the probability of abrupt price swings. Investors should remain vigilant, as any significant market movements could still occur, but the receding funding rate bodes well for more stable trading conditions.