Bitcoin (BTC) funding rates, i.e. the fees required by cryptocurrency derivatives exchanges to maintain a balance between spot and futures prices, are shrinking. This could be a disturbing sign for Bitcoin (BTC) bulls, says a CryptoQuant community author.

Bitcoin funding rates have dropped significantly: what does this mean?

As Bitcoin (BTC), the largest cryptocurrency, was brutally denounced over $100,000, its derivatives market is beginning to show signs of exhausting demand. CryptoQuant community analyst @ShayanBTC said in his latest QuickTake report that exchange funding rates for BTCUSDT contracts are facing a significant decline. mail.

The analyst noted that the previous “rejection” near $108,000 was the most painful for this indicator. As such, centralized cryptocurrency exchanges are reducing funding rates as fewer traders open Bitcoin (BTC) trades.

The analyst concludes that this trend shows low commitment of traders in the derivatives market, resulting in insufficient support to sustain the uptrend.

There could be more pain ahead for Bitcoin (BTC) users once the largest cryptocurrency fails to hold more than $90,000. Bitcoin (BTC) may test lower Fibonacci levels in future downtrends.

As previously covered by U.Today, Bitcoin (BTC) fell from $102,000 to $95,200 today. In a broader decline, the entire cryptocurrency market lost 8.3% of its capital value, with meme currencies being the hardest hit.

Bitcoin's RSI is already targeting oversold areas

Funding rates should be viewed as fees charged to derivatives traders. The financing rate is usually associated with perpetual contracts, and decreases as demand for this or that asset decreases.

However, the trading sentiment RSI appears more bullish for Bitcoin (BTC). In recent days, it has dropped from the mid-70s to approximately 35 points, the upper level of the “oversold” zone.

When Bitcoin (BTC) was trading above $100,000, this key technical analysis indicator was showing that the orange coin was clearly overbought.