Analyst: Funding rate flashes typical signal before Bitcoin big market, pessimistic sentiment may have peaked

On July 29, CryptoQuant analyst Darkfost stated that Bitcoin's funding rates are showing typical signals that preceded major rallies in September 2024 and December 2022, suggesting that pessimistic sentiment may have recently peaked. From March to May, Bitcoin experienced a pullback of over 50%, accumulating short positions that pushed funding rates into negative territory, followed by a BTC rebound to $82,000 in May. This signal is now reappearing, potentially creating room for a bullish rebuild in the coming months. This indicator, transformed into a monthly sentiment aggregation tool, is more effective than the Fear and Greed Index.