On-chain data shows the Bitcoin funding rate is still at a relatively high positive value, suggesting that the crypto might see more decline in the near term.
When the value of this metric is above zero, it means long traders are currently paying a premium to the short traders to keep their positions. Such values indicate that a bullish sentiment is more dominant in the market at the moment.
On the other hand, negative values of the indicator imply the majority sentiment is bearish right now as shorts are paying longs currently.
Now, here is a chart that shows the trend in the Bitcoin funding rates over the last six months:
As you can see in the above graph, whenever the Bitcoin funding rate has reached a relatively high positive value during the last few months, the price of the crypto has generally observed a decline not too long after. Similarly, negative spikes have resulted in the value of BTC seeing some uptrend.
A few days back, when the price of the crypto was above $23k, the funding rate again made a positive peak and the price subsequently went down. However, the current value of the indicator still looks to be quite positive, which may mean the decline is still ongoing.
The below chart shows the trend in the price of the coin over the last five days.