Analyst: Bitcoin returns above $70,000, Binance funding rate continues to show negative indicating a general bearish sentiment in the market

On March 13, CryptoQuant analyst Darkfost stated that when BTC stabilizes above $70,000, the market's distrust is intensifying. Currently, very few investors truly believe that BTC will experience a sustained bullish rebound. The geopolitical and macroeconomic environment remains unfavorable, especially with the ongoing tensions surrounding global oil trade. In such an environment, risk assets like Bitcoin typically struggle to perform strongly. Therefore, despite BTC having regained the $70,000 mark, many market participants still maintain a bearish inclination. This sentiment is particularly evident in the derivatives market, especially reflected in Binance's funding rate. Since early March, every price rebound seems to have been viewed by traders as an opportunity to short BTC. This has led to Binance's funding rate being in negative territory for about a week. Some records even reached extreme levels. For instance, on March 10 and 11, Binance's funding rate briefly fell below -0.006, representing significant deep negative values. In practical terms, this indicates that the vast majority of current open positions in the market are leaning toward shorts, and investors generally hold a skeptical view on the possibility of a genuine recovery for Bitcoin. Historical experience shows that when funding rates reach extreme levels or the market forms strong consensus expectations, it often means that it is too late to position in that direction. If BTC can continue to rebound and trigger the market's 'distrust rally' phase, bearish positions might actually become a driving force for the rise. As prices climb further, forced liquidations of shorts could potentially provide additional momentum for the market.