The Bitcoin funding rate has turned negative seven times in the past year, and the market may shift to a bullish momentum

ChainCatcher news, according to bitcoinist, CryptoQuant indicators show that the Bitcoin funding rate has turned negative seven times in the past year. Historically, the previous six instances of negative funding rates have indicated a strong bullish momentum for BTC. This indicator reflects the cost of holding leveraged positions in perpetual futures contracts, suggesting that traders have become overly bearish, which also marks a local bottom, often a precursor to a significant rebound.

If history repeats itself, the market may soon turn bullish. Currently, traders are closely monitoring liquidity levels below $98,000, with $100,000 seen as strong support for the first step in driving price discovery. A breakthrough at this level could trigger increased buying pressure, and to fully restore bullish momentum and change market sentiment, BTC needs to reclaim the $103,600 threshold.