The Bitcoin perpetual futures market is experiencing a negative funding rate, indicating a prevailing bearish sentiment among traders. According to Glassnode analyst Chris Beamish, the funding rate, which measures the periodic fee exchanges between long and short positions, has recently turned negative. This suggests that short positions are currently dominating the market, as traders bet on a downward trend.
Despite Bitcoin's recent rally above $75,000, the market's expectations have shifted, with shorts maintaining control. This shift in sentiment comes as Bitcoin's price stabilizes around $70,400 after a recent retrace. Additionally, Glassnode's latest report highlights a supply gap between $72,000 and $82,000, suggesting limited on-chain resistance until the higher price level, although Bitcoin's recent attempts to breach this range have been unsuccessful.
Bitcoin Funding Rate Negative, Signaling Bearish Market Sentiment
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