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