Bitcoin is testing the $95,000 price support after $100,000 failed to alleviate the market-wide bearish momentum. The world’s leading cryptocurrency appears to be losing the battle to reach six-digit valuations again, but on-chain data reveals that amounts being staked on Bitcoin are increasing.
Financing and price divergence indicates aggressive positioning
In a November 15 post on QuickTake, analyst KriptoCenneti shares his insights on market balance amid continued price declines. According to analysts, Bitcoin’s funding rate has remained consistently within positive values over the past month. While BTC crashed from over $110,000 to around $96,000, the funding rate remained within the range of 0.003-0.008%.
Cryptochenetti explains that this particular type of divergence in investor behavior in response to price trends reflects the continued maintenance of long positions despite price direction. Historical data shows that long-term positive funding rates like the ones we are witnessing typically reflect aggressive long positions. This is because when prices fall, leveraged traders may seek opportunities to buy near the bottom of the market in order to maximize profits.
However, the downside to this action is the greater risk associated with the expectation of superior returns. If funding rates remain high in a clear bear market, the market environment will become increasingly fragile. In this scenario, a significant amount of these leveraged positions could be forced to close if some event occurs that causes high volatility in the market. These liquidation cascades can then trigger a secular squeeze, a rapid decline due to liquidations and frightened market exits.
In a notable comment, crypto analysts compared the current spike in funding rates to the spike seen in late 2024 and early 2025. Cryptoceneti said recent funding rates pale in comparison to the spike seen in the aforementioned period. What this suggests is that even with significant leverage injected, the market has not yet overheated.
In particular, if Bitcoin funding rates continue to rise while the cryptocurrency trades below key resistance levels, volatility could return to the market, which could trigger a series of liquidation events as discussed earlier. Nevertheless, the sustained increase in funding rates could also be a sign of unwavering confidence in the long-term growth of cryptocurrencies. As more players continue to bet on Bitcoin, we can imagine that the general sentiment among this investor base is one of optimism, with hopes for a major recovery commonly shared.
Bitcoin price overview
At the time of writing, Bitcoin is valued at approximately $95,371, with an increase of just 0.19% over the past day, according to data from CoinMarketCap.
Featured images from Pexels, charts from Tradingview
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