The Bitcoin funding rate and 3-month annualized basis rates are moving to levels that signal to traders it may just be the “calm before the storm.”
Two key Bitcoin (BTC) trading indicators — funding rate and 3-month annualized basis rate — could suggest the price is on track to go upwards soon, according to a crypto analyst.
“Looks like we’re consolidating before the next leg up,” Reflexivity Research co-founder Will Clemente wrote in a May 7 post on X, explaining that both Bitcoin’s funding rate and Basis rate have “cooled off” after briefly reaching negative readings.
Bitcoin’s funding rate is often used to track overall trader sentiment for the cryptocurrency market. Exchanges use this rate to balance out traders entering long positions with those opting for short positions to mitigate the risk of overexposure.
