K33 Research: Shorts may be running out of steam, Bitcoin contract funding rates are negative for the first time since the bear bottom in 2022

ChainCatcher news, K33 Research analyst Vetle Lunde stated that the funding rate for Bitcoin perpetual futures has been below neutral for over 30 consecutive days, with the average funding rate over the past four weeks currently at a negative level for the first time since December 25, 2022. When the funding rate for Bitcoin perpetual futures is negative, it indicates that traders are mostly betting on a decline in asset prices. However, hedging or directly shorting positions are becoming increasingly crowded, which is also a clear indicator that sellers are nearing exhaustion.

The analyst pointed out that if the market follows seasonal trends, September will be a good opportunity to buy on dips, followed by a potential recovery in the fourth quarter of this year. Historically, buying on dips in September has indeed yielded good returns by the end of the year.