- Bitcoin’s Funding Rates on top exchanges have dropped to zero, mirroring past bullish setups.
- BTC is consolidating above $90K, with key technical indicators hinting at a potential breakout.
Bitcoin’s[BTC] Average Funding Rate across three major exchanges recently dropped to zero, a development that historically signals the onset of a macro bull rally.
While it remains uncertain how long the funding rate will stay at these levels, past cycles indicate that such moments often precede major price surges.
Understanding the implications of a zero Funding Rate
The Funding Rate in Bitcoin futures is a key indicator of market sentiment. When it turns negative, it means short traders are paying long traders, suggesting that bearish sentiment is dominant. Conversely, a highly positive Funding Rate indicates excessive bullish leverage in the market.
A drop to zero typically reflects a balanced market with neutral sentiment. However, historical data suggests that this equilibrium often precedes strong upside moves.
This was observed during previous cycles, when similar dips in the Funding Rate led to aggressive price rallies.
Source: Axel Adler (CryptoQuant)
BTC holds firm above $90K – A bullish signal?
One key factor supporting the bullish case is Bitcoin’s resilience above the $90K mark. Despite temporary retracements, the cryptocurrency has consistently rebounded from this level, showing strong buying interest.
A closer look at Bitcoin’s price chart revealed a critical technical setup. The 50-day Moving Average (MA) currently sits at approximately $98,709.64, while the 200-day MA is positioned around $79,118.31 as of this writing.
Source: TradingView
Bitcoin is testing the short-term MA, and maintaining above this level could reinforce bullish resilience. The Relative Strength Index (RSI) is at 46.22 at press time, suggesting that BTC is neither overbought nor oversold.
This leaves room for a potential upward move, provided buying pressure remains steady. Volume activity also indicates that bulls are accumulating near the current range, further strengthening the $90,000 support zone.
Funding rate dynamics: A key market indicator
The BTC Futures Perpetual Funding Rate [7D-SMA] chart adds another layer to the analysis.
If the trend repeats, Bitcoin could be gearing up for another breakout. Meanwhile, the all-exchanges Funding Rate chart shows a brief dip below zero, meaning short positions were paying longs.
Source: CryptoQuant
Typically, this suggests traders anticipate a price decline or stagnation, but in past instances, similar dips have acted as catalysts for upward momentum. If Funding Rates remain neutral or negative for an extended period, Bitcoin may experience lower volatility before making a decisive move.
What comes next for Bitcoin?
If the Funding Rate remains near zero or turns slightly positive, it could pave the way for a continuation of Bitcoin’s macro uptrend.
On the flip side, a prolonged negative Funding Rate could introduce volatility, potentially leading to liquidations in the derivatives market.
Given current market conditions, traders should closely monitor Funding Rate fluctuations and BTC’s ability to sustain its $90K support level.
– Read Bitcoin (BTC) Price Prediction 2025-26
As the market consolidates, a decisive break above the $98K-$100K resistance could trigger the next leg of the rally, pushing Bitcoin toward new all-time highs.
Whether history repeats itself with another bull run remains to be seen, but the current setup favors a potential breakout.
