TechFlow News, January 9, according to analyst ShayanBTC, any sustained sharp rise in market prices usually relies on an increase in funding rates, which can be seen as strong demand in the derivatives market. Without this growth, the upward trend may be shaken. It is worth noting that this growth does not necessarily need to happen immediately, but the lack of such growth during the rise will raise concerns about market strength.
In the recent Bitcoin rally, the funding rate showed a clear increase midway through the uptrend, indicating a delay in the influx of demand. However, when Bitcoin failed to break through the $108,000 resistance level, the funding rate dropped sharply. This drop highlights:
Capital outflow: reduced participation from traders in the derivatives market.
Weak bullish momentum: insufficient strength to support the uptrend. The current state of the funding rate aligns with broader market sentiment, as participants show hesitation, especially after the rejection at $108K.
If Bitcoin fails to maintain the support level at $90K, the market may face:
Increased selling pressure: triggered by a loss of confidence among participants.
A deeper correction: may test lower Fibonacci levels or psychological thresholds.
Conversely, if the funding rate recovers with strong buying activity, Bitcoin may stabilize and re-enter an upward trajectory.
