The Bitcoin market is experiencing interesting fluctuations. In the recent price surge, Funding Rates increased sharply mid-way, indicating a slow increase in demand. However, after Bitcoin was rejected at the resistance level of $108K, Funding Rates dropped significantly.
This indicates:
- Outflow of capital: Commitment from traders in the derivatives market is decreasing.
- Weak upward momentum: Lack of support to maintain the upward trend.
If Bitcoin cannot hold above the support level of $90K, the market may face:
- Increased selling pressure: Due to loss of confidence from participants.
- Deeper corrections: May test lower Fibonacci levels.
Conversely, if Funding Rates recover alongside strong buying activity, Bitcoin may stabilize and continue the upward trend.