According to an analyst, the funding rate for Bitcoin’s open interest (OI) weighted perpetual futures has reached a multi-month high, potentially indicating a bullish outlook in the short to medium term.
Currently at 0.012%, this level has not been seen since July 27, when Bitcoin briefly rose to $68,000.
However, there was a major 22% price correction at the beginning of August after the highly leveraged market was cleared out.
Ruslan Lienkha, Chief of Markets at YouHodler, explained that while a positive funding rate can suggest a bullish trend, it should be approached with caution due to the volatile nature of the crypto market.
Lienkha advises against relying solely on the funding rate for long-term predictions.
