Why a decline in 2 significant Bitcoin indicators may actually indicate a bullish trend

Bitcoin’s price may be poised to rise soon, according to a crypto analyst who identified two key indicators. Will Clemente, co-founder of Reflexivity Research, observed that both Bitcoin’s funding rate and 3-month annualized basis rate have cooled off after briefly hitting negative readings. The funding rate, which is used to gauge trader sentiment, turned positive when long-position traders took dominant positions, indicating confidence in Bitcoin’s price increasing. Additionally, the annualized basis rate, which measures the cost difference between a Bitcoin futures contract and the actual price, has increased to the higher end of the 5-10% neutral range on major exchanges. Despite liquidation data suggesting bearish sentiment among futures traders, Bitcoin’s price has seen a slight increase. Traders are cautiously optimistic and believe that the low funding rates coupled with the price bounce are bullish signs. However, it is important to note that this article does not provide investment advice and readers should conduct their own research before making any decisions.