Bitcoin’s latest price trajectory shows a marginal 2.3% drop over the past day, pegging its current trading value at approximately $107,205. This follows a 4.1% decrease from its all-time high of over $111,000 set last month. However, despite this short-term setback, market analysts are spotting potential signs of a future rally in the derivatives data.
On-chain analyst “nino”, through CryptoQuant’s QuickTake platform, has shared insights that point towards the potential for Bitcoin’s resurgence. According to the analyst, Bitcoin seems to be following a funding rate pattern that has previously led to price recoveries. The data reveals Bitcoin’s funding rate briefly dipping into negative before initiating an upward swing, which has historically corresponded with price rallies.
Nino’s analysis implies that this pattern, particularly the 72-hour moving averages moving out of the oversold zone and forming a yellow-blue-black signal, may trigger a wave of short position liquidations. The funding rate, still below levels usually tied to bullish sentiment, suggests traders are not yet overly optimistic, leaving room for further price improvement without immediate overheating.
The analyst’s findings focus on market structure and derivative sentiment, underlining how positioning in perpetual futures markets could precede significant spot price shifts. When funding rates turn negative and then start to increase, they often reflect traders unwinding bearish bets made at high leverage. The resulting buy pressure can act as a short-term catalyst, a scenario that has played out multiple times in 2025.
In separate commentary, CryptoQuant analyst Burak Kesmeci discussed structural changes in spot trading liquidity, particularly concerning Binance’s share of international trading volume. Kesmeci stated that Binance’s dominance is a crucial indicator of institutional participation and overall market health. An increase in Binance’s spot volume share often signals better liquidity and smoother price discovery. However, a drop below 30% could indicate a shift towards more “fragmented liquidity” across exchanges. Currently, Binance’s volume share is recovering, suggesting a relatively stable trading environment.
Featured image created with DALL-E, Chart from TradingView
