caueconomy
The market is mostly bearish and is betting on further declines, according to funding rates.
The funding rate of perpetual futures normally signals the current market bias, at which point traders build short positions. The last such negative hourly value was during December 2022, with the price of Bitcoin around 16 thousand US dollars. If we notice, we also see all the periods where the majority of the market bet on a fall during this year. It was usually on local floors. This happens due to the contrary nature of the common market bias, usually when traders build high leverage in the futures market by betting on a directional bias, any strong contrary change in price ends up generating a squeeze. If we have more leverage building and bearish bets in this setup we could have a price recovery driven by cascading shorts liquidations.