Bitcoin is testing the $95,000 price support, after $100,000 failed to ease the market-wide bearish momentum. Although the world’s leading cryptocurrency appears to be losing the battle for its six-figure valuation revaluation, on-chain data reveals that there is an increasing amount of bets being placed on Bitcoin.
Divergence in financing versus price indicates aggressive positioning
In a Quick post On November 15, analyst KriptoCenneti shared his insights regarding market balance amid the ongoing price decline. According to the analyst, Bitcoin’s funding rate has consistently remained within positive values over the past month. As Bitcoin prices collapsed from $110,000 to around $96,000, funding rates maintained their values within the 0.003-0.008% range.
CryptoSinity explains that this specific type of divergence in investor behavior versus price action reflects the continued maintenance of long positions, despite the price trend. According to historical data, extended periods of positive financing rates, such as the one we are experiencing, typically reflect strong long positions. This is because as prices fall, traders using leverage may want to seize opportunities to buy near perceived market bottoms, so as to maximize returns.
However, the downside of this behavior is the large amount of risk associated with expectations of a good return. When financing rates remain high in an apparent bear market, an increasingly fragile market environment is created. In this scenario, any event that calls for high market volatility could cause a forced closing of a large amount of these leveraged positions. In turn, this series of liquidations may lead to a long squeeze, i.e. a rapid downward movement due to liquidations and a feared exit from the market.
In a noteworthy comment, the cryptocurrency analyst compared the current surge in funding rates to the spikes seen in late 2024 and early 2025. According to KriptoCenneti, funding rates have recently almost dwarfed the spikes seen in the aforementioned periods. What this indicates is that the market has not warmed up yet, even if it is imbued with a fair amount of leverage.
Notably, if Bitcoin funding rates continue to rise with the cryptocurrency trading below key resistance levels, the market may see a return of volatility, which in turn could trigger a series of liquidation events as described previously. However, continued growth in funding rates may also be a sign of firm confidence in the cryptocurrency’s long-term growth. As more players continue to bet on Bitcoin, we can imagine that the prevailing sentiment within this investor class is one of optimism, with expectations of a major rebound generally shared.
Bitcoin price at a glance
As of press time, Bitcoin’s valuation stands at around $95,371, with CoinMarketCap data revealing a meager 0.19% increase over the past day.
Featured image from Pexels, chart from Tradingview
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The post Bitcoin Funding Rate Reads Positive As Price Weakens — What To Expect first appeared on Investorempires.com.
