Bitcoin is testing price support at $95,000 after $100,000 failed to ease the bearish momentum across the market. Although the world’s leading cryptocurrency appears to be losing the battle to regain its six-figure valuation, on-chain data shows that betting against Bitcoin is increasing.
Differences in Funds vs. Price, Indicating Aggressive Positioning
In a November 15 QuickTake post, analyst KriptoCenneti shares insights into market balance amid ongoing price declines. According to analysts, Bitcoin’s funding rate has consistently maintained positive values over the past month. As BTC plummeted from prices above $110,000 to around $96,000, the funding rate held values within a range of 0.003-0.008%.
KriptoCenneti explains that this particular type of difference in investor behavior in response to price action reflects the persistent holding of long positions despite price direction. Historical data shows that prolonged periods of positive funding rates, as we are seeing, typically reflect aggressive long positioning. This is because as prices fall, leveraged traders may want to take buying opportunities close to the perceived market bottom to maximize profits.
However, the downside of this behavior is the high risk associated with the expectation of good returns. In a clear bear market, keeping funding rates high creates an increasingly fragile market environment. In this scenario, any event that causes high volatility in the market could force many of these leveraged positions to close. As a result, these liquidation cascades can trigger sharp downward movements, i.e. long squeezes, due to liquidations and feared market exits.
In a notable commentary, the cryptocurrency analyst compared the current funding rate surge to the surge seen in late 2024 and early 2025. According to KriptoCenneti, recent funding rates have almost paled in comparison to the surge seen in the aforementioned period. This means that even with significant leverage, the market is not yet overheated.
In particular, if the Bitcoin funding rate continues to increase as the cryptocurrency trades below key resistance levels, the market could see volatility again, triggering a series of liquidation events as described earlier. Nonetheless, the continued increase in funding rates may be a sign of unwavering confidence in the long-term growth of cryptocurrencies. As more players continue to bet on Bitcoin, we can imagine the prevailing sentiment within this investor class to be optimistic, with expectations of a major recovery being commonly shared.
Bitcoin price at a glance
As of press time, Bitcoin is worth about $95,371, with a slight 0.19% increase over the past day, according to CoinMarketCap data.
Featured image from Pexels, chart from Tradingview
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