Bitcoin price has dropped almost 5% this week, inspiring a wave of bearish sentiment across the market. Santiment's mid-term trends shows CPI, inflation and bear market searches are trending. With key support from $26,400-$26,500 still holding, BTC could recover to breach the key resistance around the $27,300-$27,400 zone. A sudden reversal could catch investors off-guard, liquidating many bears, considering the overall bearish market sentiment. ticipate a prolonged downtrend.
What is funding rate? Funding rates are a concept designed to encourage traders to take positions and ensure perpetual contract prices match spot markets. It defines a mechanism by exchanges to ensure that future prices and index prices periodic payments regularly converge. When the funding rate is positive, the price of the perpetual contract is higher than the mark price. This means traders who are bullish and have opened long positions pay traders who are in short positions.