• 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.

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

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Author: Adewale Olarinde