Bitcoin has recently undergone a pullback, witnessing a decline towards the $64K level. Assessing whether this correction has resulted in a cooling down of the futures market can provide valuable insights for investors.
The chart presented illustrates Bitcoin funding rates, which serve as indicators of whether buyers or sellers are executing their orders more aggressively. While positive funding rates are essential, elevated values can raise concerns, often leading to a cascade of long liquidations.
Observing the chart, it becomes apparent that the price has undergone corrective retracements recently. This has triggered a notable decrease in funding rates following a substantial surge in early February. This decline suggests a shift in the futures market from an overheated state to a cooling-down phase.
Such a development can be interpreted as positive in the long term, as it alleviates the pressure for further liquidations and fosters conditions conducive to a sustainable uptrend. Consequently, investors may find reassurance in this shift, as it potentially signals a healthier market environment in a broader view.
Written by Shayan_7
