CryptoQuant, a cryptocurrency analytics firm, has expressed concern about the recent strength of Bitcoin's movement. They believe that the drop in funding rates in the derivatives market indicates weak demand. Funding rates, which measure the cost of holding a long position in Bitcoin futures, are considered an important indicator of market sentiment. Although funding rates increased during Bitcoin's recent rally, they have sharply declined since its decline from the $108,000 resistance level. CryptoQuant emphasizes the importance of Bitcoin staying above the $90,000 support level and warns of a potential further decline if this is not achieved. However, they also mention that if funding rates recover and strong buying activity resumes, Bitcoin could stabilize above key support levels and continue its upward trajectory.



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