COINOTAG reported on February 5th that the latest data from CryptoQuant indicates a significant trend for Bitcoin, as its funding rate has dipped into negative territory for the seventh time this year. This recent decline in funding rate has previously been associated with a strong bullish reversal, presenting a potential opportunity for traders. The funding rate serves as an essential gauge of the cost associated with holding leveraged positions in perpetual futures, suggesting that the current market sentiment has turned notably pessimistic.
Market analysts are now shifting focus to liquidity levels, particularly below the $98,000 mark, while identifying $100,000 as a crucial support level that could catalyze the next phase of price discovery. Should Bitcoin successfully break through this barrier, it may instigate a wave of buying interest. For a full restoration of bullish momentum and to alter prevailing market sentiment, Bitcoin will need to reclaim the vital threshold of $103,600.