Bitcoin financing rates remain low as traders wait – is this a healthy signal for the next leg?

Bitcoin is under pressure again after its all-time high of $112,000, exceeds 7%. The sharp answer lowered BTC to a critical support zone, and what happened next could determine the direction of the rest of the quarter. Global tensions between the United States and China are intensifying, tariff disputes surface and increase pressure on an already fragile market environment. This background is fueling volatility and forcing investors to rethink the risks of their risky assets.

Top analyst DarkFost shared key insights that funding rates remain unusually low among major exchanges. This suggests a clear lack of belief among traders, especially in derivatives markets. Typically, breakouts above previous all-time highs trigger euphoric behavior and leverage increases, but the current environment is hesitant and cautious.

While some interpret it as a weakness, others see it as a healthy signal that the market is not overheating and may establish a stronger foundation for the next leg. As BTC approaches key levels, all eyes are now focused on whether the Bulls can restore control or a deeper correction is coming.

Bitcoin derivatives market signals are healthy and cautious

Bitcoin is now facing sharp sales pressure after consolidating its all-time high below $112,000. After weeks of strength, the current pullback suggests that the market may enter horizontal consolidation as traders await fresh catalysts. Macroeconomic uncertainty continues to have an impact on sentiment, especially as the rise in U.S. treasury production has attracted attention to systemic risks. These conditions affect not only Bitcoin, but also the wider cryptocurrency market, including altcoins.

According to DarkFost’s analysis, the funding rate on most exchanges is still unusually low. The indicator reflects the cost of maintaining a leveraged position in a permanent futures contract, usually a spike during euphoric rally. But while BTC hovers around its highs, investors’ interest in long-term exposure remains soft. This cautious stance has fueled uncertainty to some extent by political uncertainty due to continued developments related to Trump.

Interestingly, DarkFost points out that this low-risk environment in this derivative is actually a camouflage bullish signal. Due to the short position, any sudden upward momentum could trigger a series of liquidations, accelerating the potential breakthrough. Furthermore, not having too much leverage means that the market is not overheating, which is a key factor in building a sustainable foundation for further gain.

In short, Bitcoin may cool temporarily, but the structure under the surface is still strong. As long as the funding rate remains balanced and systemic risks do not escalate further, the current pause can serve as a launch pad for the next impulse action.

BTC holds support as Bulls defend $103K – $104K zone

Bitcoin is currently testing a critical support zone, which is between $103,600 and $104,000 after failing to maintain momentum above its all-time high of $112,000. The chart shows a strong rejection from the $109,300 resistance level, which was previously a key breakthrough point in May. The pullback is accompanied by a decline in quantity, indicating that sales pressures may slow as prices approach demand.

The 34-day exponential moving average (EMA) currently at $102,710 also converges with the support area, adding confluence and technical implications to the area. If the Bulls manage to go above the $103,600 line, Bitcoin could form a higher low – a bullish structure could set the stage for the rebounding for the upcoming meeting.

However, a clean breakout below this level could invalidate short-term bullish papers and open the door to correct the $98,000-100,000 range more deeply. As global tensions and economic uncertainty increase, this level will serve as a touchstone test of market strength. Bitcoin is still technically on an upward trend, but it must stick to the bullish momentum heading towards June.

Featured images from DALL-E, charts from TradingView

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