Funding Rate data across all exchanges is rising sharply again, showing that $BTC market sentiment is starting to shift clearly toward a Long-biased state.

- The notable point is that funding has jumped back to a high positive level while $BTC price is still in a weak zone around $60K. Price has not recovered strongly yet, but derivatives traders have already started betting aggressively on a rebound scenario.

- Long positions are paying fees to maintain their positions, showing that bullish expectations are heating up.

- If price is not confirmed by spot buying pressure, the market can easily fall into a “crowded long” state, increasing the risk of a long squeeze.

- In other words, strong positive funding is a signal that sentiment is improving, but it is not enough to confirm a sustainable reversal. For $BTC, the next thing to watch is whether rising funding comes together with spot inflows and real absorption.

- If funding continues to stay positive but price fails to break key resistance zones, short-term correction risk remains. But if funding rises together with price and improving spot volume, this could be the stage where the market starts pricing in a new recovery leg.

Written by Rei Researcher