Bitcoin (BTC) price has been consolidating in a wide range between $80,000 to $88,500 since March 12.
Data suggests that Bitcoin’s consolidation may continue for some time, with onchain indicators pointing to the continuation of the “broader downtrend.” The key question that remains is when Bitcoin’s consolidation will end.
BTC/USD daily chart. Source: Cointelegraph/TradingView
BTC funding rates show low chances of a breakout
One of the clearest signs that there is more choppy price action ahead for Bitcoin is the presence of muted funding rates in the BTC futures markets.
Key points:
Funding rates are periodic payments made between long and short traders in perpetual futures contracts to keep prices aligned with the spot market.
When this metric turns negative, it means short sellers are paying long holders, indicating that bearish sentiment dominates.
BTC funding rates have been oscillating around 0% since late February, indicating indecisiveness dominates the market.
BTC perpetual futures funding rates across all exchanges. Source: Glassnode
When funding rates are zero, the cost of holding positions is minimal, reducing pressure on traders to exit longs or shorts and leading to price consolidation.
Commenting on the funding rate, crypto analyst Axel Adler Junior said that Bitcoin’s average funding rate on major exchanges “has dropped into negative territory,” currently sitting just above zero.
“In this cycle, in four similar instances, it ended with a price increase and once with a decline.”
According to the analyst, positive signals from the US Federal Reserve and the Trump administration could renew fresh inflows into the market, “potentially triggering the start of a new rally.”
Onchain metrics show Bitcoin price stuck in “broader downtrend”
Several onchain metrics suggest Bitcoin’s April 2 rally to $87,500 was just a “relief rally within a broader downtrend rather than the beginning of a sustained reversal,” according to market intelligence firm Glassnode.
In its latest market report, Glassnode found that the 90-day simple moving average of Bitcoin’s Realized Profit/Loss Ratio had…
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