This is the scenario that bullish traders want to see.

Bitcoin's funding rates across all futures exchanges have turned negative, indicating that bears are dominant in the market and are paying longs. This is an interesting signal.

The key lies in the funding rate behavior during rebounds. If, during a price increase, the funding rate suddenly spikes to a very high level, it often indicates that the market will decline again afterward. Why? Because a high funding rate itself suggests that the market is not fully prepared with short positions, and the rebound's strength is limited—lacking genuine support at the bottom.