Deep Tide TechFlow news, on January 9, analyst ShayanBTC stated that any sustained and sharp rise in market prices usually relies on an increase in funding rates, indicating strong demand in the derivatives market. Without such growth, the upward trend may waver. It is worth noting that this growth does not necessarily need to occur immediately, but a lack of such growth during the upward process may raise concerns about market strength.
In the recent Bitcoin surge, funding rates showed a significant increase midway through the upward trend, indicating a delayed influx of demand. However, after Bitcoin failed to break through the resistance level of $108,000, funding rates plummeted. This decline highlights:


Capital outflow: Traders are reducing their input in the derivatives market.


Bull market momentum is weak: Insufficient support for the upward trend. The current state of funding rates aligns with broader market sentiment, with participants showing hesitation, especially after the rejection at $108K.


If Bitcoin fails to maintain above the support level of $90K, the market may face:


Increased selling pressure: Triggered by a loss of confidence among participants.


Deeper correction: May test lower Fibonacci levels or psychological thresholds.


Conversely, if funding rates recover with strong buying activity, Bitcoin may stabilize and re-enter an upward trajectory.

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