Analyst: Funding rates flashing typical signals before a major Bitcoin market movement, pessimistic sentiment may have peaked

CryptoQuant analyst Darkfost stated that the Bitcoin funding rate is showing typical signals before the significant increases in September 2024 and December 2022, indicating that pessimism may have recently peaked.

From March to May, Bitcoin corrected over 50%, and the accumulation of short positions pushed the funding rate down to negative values. Subsequently, BTC rebounded to $82,000 in May. This signal has appeared again, potentially leaving room for a bullish reconstruction in the coming months. This indicator has been transformed into a monthly sentiment aggregation tool, which is more effective than the Fear and Greed Index.