Analyst: Negative BTC funding rate suggests further rally possible

Even after Bitcoin’s recent rally from $110,000 to $120,000, the funding rate on Binance remains below neutral or negative, suggesting the current price increase is driven by spot demand, according to an analysis by CryptoQuant contributor PelinayPA. The contributor explained that while funding rates typically turn strongly positive at price peaks, the current situation is the opposite, indicating that more traders are anticipating a decline. This environment could instead lead to a short squeeze. The analysis concludes that BTC is likely to see further gains as long as it holds above the $115,000 support level. However, a break below this level could trigger a correction down to the $105,000 to $110,000 range.