Bitcoin Traders Turn Bearish as Rates Dive Despite $68K Hold

Bitcoin dealers have gone more to the bearish side as the funding rates in the derivatives market have fallen to an alarming extent, indicating an increasing pessimism

ContentsFunding rates signal bearish sentimentMarket divergence between futures and spotLeverage reduction cleanses the marketA Foundation for Long-Term RecoveryNonetheless, the spot price of Bitcoin has been able to maintain its position close to the support level of $68,000 to 69,000

The futures market is saturated with short positions, which means that the market mood is more than ever biased towards a downward trend.

Funding rates signal bearish sentiment

According to the latest statistics on derivatives analytics tools, Bitcoin funding rates have plunged into negative values to a considerable degree

This implies that long traders are being paid by short sellers to hold

The negative funding rates are a sign that there are many traders who are looking for Bitcoin prices to fall further, and the sentiment in the market is rather bearish.

This notwithstanding, the spot price of Bitcoin stood strong and varied within the range of $62,000- $69,000

This indicates that the bearish sentiment in the futures market is also increasing, but at the same time, the support of the market at $68,000-$69,000 still holds firm and does not cause a major price drop

The support zone is being defended by buyers, though they are not pushing the prices up in an aggressive way.

Market divergence between futures and spot

There has been a remarkable split between the futures and the spot market in the current market

The future market is an indication of the negative attitude since there is more short positioning in favor of more price decreases

Conversely, the spot market is still comparatively stable as buyers are interested in major support levels.

This scenario notes the absence of purchasing appetite, where the majority of the participants in the market are still hesitant to take long positions pending more clarity

The pressure to sell is still increasing, but the market is still in the consolidation stage, as Bitcoin is not demonstrating good momentum but weakness

Nonetheless, the support of between $68,000 and 69,000 remains intact and stable in the meantime.

Leverage reduction cleanses the market

In the last year, leverage was used by numerous traders to increase their positions, especially in the Bitcoin rally that touched its peak at $126,200 in October 2025

But when the price of Bitcoin started falling, forced liquidations were made, and this reduced overall leverage in the system.

The traders who apply more leverage to trade have also reduced in number, leading to a more stable market environment

Even though liquidation cycles can cause short-term volatility, they will eventually help clean the market, clearing away high-risk positions and lowering the risk of cascading crashes.

A Foundation for Long-Term Recovery

Although the current sentiment can be said to be ultra-bearish at this time, the market has already witnessed a much lower leverage, which could be an indicator of a clean business environment in the future

Records indicate that resets like these in the market usually come before more sustainable recoveries, though no immediate recovery is assured.

The important points of concern are the support at the $60,000 and the resistance at the 67,000 69,000. Provided that Bitcoin overcomes the level of resistance, there is a possibility that a short squeeze will cause an abrupt increase

But once the price is lowered below 60,000, then the negative trend can be ensured, causing further downfalls.