Bitcoin Funding Rate Shows Traders Cautious as BTC Dips Below $100K Again

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Bitcoin Funding Rate Shows Traders Remain Cautious as Bitcoin Dips Below $100K Again
Bitcoin Funding Rate Shows Traders Remain Cautious as Bitcoin Dips Below $100K Again
January 7, 2025


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Despite Bitcoin’s recent gains, funding rate data shows that traders remain cautious amid near-term resistance.
Bitcoin started 2025 with a strong rebound, rising 4% on January 6, returning to the $100,000 mark for the first time in a few weeks. After reaching a high of $$102,760 today, the price faced resistance, resulting in a sharp correction that pushed Bitcoin back below six figures.
Cautious market sentiment is reflected in financing rates
Meanwhile, despite yesterday’s rise, data released today by Glassnode showed that funding rates, a notable indicator for assessing trader sentiment in the derivatives market, showed a cautious outlook for the market.

After reaching a high of 0.026% in mid-December, the weekly moving average of the perpetual funding rate fell to 0.009% — just below the neutral 0.01%: https://t.co/CORjRx0X2k
This suggests cautious market positioning, with speculators limited willingness to pay a premium for long-term contracts… pic.twitter.com/JwSPpZRpeG
— glassnode (@glassnode) January 7, 2025

According to the disclosure, the weekly moving average of the permanent funding rate fell to 0.009%, below the neutral level of 0.01%. This marks a decline from the mid-December high of 0.026%, showing limited appetite for paying the premium for leveraged long positions.
Additionally, data from Coinglass showed that the opening rate weighted funding rate rose slightly to 0.0058%, but was down significantly from the high of 0.0113% on January 5. Likewise, the volume-weighted funding rate rose to 0.0051%, still well below its previous high of 0.0111%.
Notably, these declining funding rates suggest that traders remain cautious as Bitcoin battles against the psychological $100,000 level. The hesitation to take on leveraged risk shows concerns about the sustainability of the recent rebound.
Despite this, bitcoin derivatives trading activity surged, with 24-hour turnover rising by 41.54% to $85.32 billion. Opening interest also rose, but only by 2.08%, reaching $648.7 billion. The long-short ratio is 1.0243, showing an almost even split between bullish and bearish sentiments.
Bitcoin Current Position
Notably, on the daily chart, the Chande Momentum Index (CMI) rose to 58.71 when Bitcoin surpassed 100,000 in $. However, the indicator subsequently retreated to 47.90. This is mainly due to weakening buying power as prices fell below $100,000.

Bitcoin 1-day chart
At the time of writing, Bitcoin is trading at $99,866, down 2.19% today. Bitcoin’s immediate resistance is at $101,536, which is the upper Bollinger Band level. Support is at the 20-day moving average of $96,642, a level that was tested at the January 5 low.
Interestingly, market analyst Rekt Capital noted that a daily close above $101,165 would be needed to confirm a breakout of Bitcoin’s recent trading range. Failure to retake this level could signal continued consolidation or further downside, he said. Meanwhile, the loss of support at $96,642 could intensify bearish pressure.

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