Bitcoin Funding Rates Turn Negative, Indicating Potential Local Price Bottom

Bitcoin (BTC) remains between $90,000 and $100,000, with investor sentiment shifting based on price movements. Key points include:

Bitcoin hasn't fallen below $90,000 since Nov. 18.
Investor sentiment turns bullish near $100,000 and bearish near $90,000.
Price volatility is influenced by derivatives like futures and options.
The perpetual funding rate indicates market sentiment; positive rates suggest bullish sentiment, while negative rates indicate bearish conditions.
On Thursday, the funding rate reached -0.001%, the first negative value this year, leading to a leverage flush before BTC rose above $94,000.
Historical comparison shows more severe negative funding rates during market crises, such as March 2020's peak at -0.309%.
Persistent positive funding rates reflect ongoing demand, despite occasional negatives occurring at price bottoms.
Negative funding rates can signal potential market rebounds or sustained bear conditions.

In 2023 and 2024, negative funding rates coincided with significant price increases following market downturns.