Bitcoin and the broader crypto market experienced a sharp decline amidst fears of a U.S. trade war, only to swiftly recover following reports of President Trump’s negotiations with Mexico and Canada to lift tariffs. While this turnaround has brought renewed optimism, volatility remains high.
Amid this turbulence, the Bitcoin Funding Rate has turned negative for the seventh time in a year, according to CryptoQuant. Historically, each of the previous six instances has signaled a strong bullish momentum for BTC, suggesting that traders have turned overly bearish—often a precursor to a sharp rebound.
Bitcoin’s resilience in the face of the recent selloff highlights its potential for a significant rally, reinforcing its long-term bullish outlook despite short-term uncertainty. The current macro environment, with key developments in the U.S. favoring crypto adoption, a pro-crypto president in office, and the final year of the halving cycle unfolding, sets the stage for potential explosive growth.
As Bitcoin consolidates below the $100K mark, traders are closely watching key support and resistance levels. Reclaiming the $100K level as strong support would be the first step toward a renewed push into price discovery, while a break below the critical $98K support could introduce further uncertainty. To fully regain bullish momentum, BTC must decisively break above the $103,600 resistance.
The coming days will be crucial in shaping Bitcoin’s short-term trend and determining whether the market continues its upward trajectory. If historical patterns hold, the current negative Funding Rate could set the stage for another significant rally, solidifying Bitcoin’s dominance as it leads the next phase of the market cycle.
Tags: Bitcoin, Crypto Market, Bitcoin Funding Rate, Market Analysis, Technical Analysis