On-chain data shows the Bitcoin funding rate is still at a relatively high positive value, suggesting that the crypto might see more decline in the near term. Bitcoin Funding Rate Has Been At A Positive Value During The Last Few Days As pointed out by an analyst in a CryptoQuant post, the current funding rate suggests that the price is in a new decline right now. The “funding rate” is an indicator that measures the periodic fee that traders in the Bitcoin futures market have to pay each other. When the value of this metric is above zero, it means long traders are currently paying a premium to the short traders to keep their positions. Such values indicate that a bullish sentiment is more dominant in the market at the moment. Related Reading | On-Chain Data: Bitcoin Whales With 10k+ BTC Have Been Growing On the other hand, negative values of the indicator imply the majority sentiment is bearish right now as shorts are paying longs currently. Now, here is a chart that shows the trend in the Bitcoin funding rates over the last six months: The value of the metric seems to have been positive in the past week | Source: CryptoQuant As you can see in the above graph, whenever the Bitcoin funding rate has reached a relatively high positive value during the last few months, the price of the crypto has generally observed a decline not too long after. Similarly, negative spikes have resulted in the value of BTC seein...
