Bitcoin's price journey experienced a strong rally at the year's start, briefly hitting $102,760 before a healthy correction pulled it below $100k. It currently trades between $96k and $102k, with trading volume reaching $6.58 billion.
Despite the optimistic price rally, caution prevails in the market sentiment. Bitcoin's funding rate, which helps gauge investment sentiment, has dropped below its neutral level, signaling investor hesitation. Glassnode's data shows a weekly moving average funding rate fall to 0.009%, indicating restricted willingness among speculators to engage in premium payments.
Although Coinglass and Coinshares report slight increases in Open Interest-Weighted and Volume-Weighted funding rates, they remain significantly lower than previous highs. Most traders appear wary of Bitcoin's ability to sustain a $100k price, reluctant to leverage exposure.
Nevertheless, the derivatives trading landscape offers some positive news, with daily volume surging by 42%. Open interest slightly rose, and the Long/Short ratio stands neutral, showing balanced investor sentiment while indicating guarded optimism. The Chande Momentum Index also reached 58.71 before dropping as prices settled beneath the peak.
