Over the past seven weeks, the price of Bitcoin ($BTC) has been in a state of uncertainty, while the cost of leveraged long positions has reached its highest level since January 20, 2025.
According to CryptoQuant, analyzed by Happy Coin News, Bitcoin funding rates—periodic payments made by traders holding long and short positions to peg perpetual contract prices to the spot price—reached 0.0228 on August 14. This is the highest level since January 20, 2025, when they stood at 0.02775.
Bitcoin funding rates have remained predominantly positive since May 26, 2026. Note that extended periods of positive funding rates coincide with the dominance of long positions, and vice versa.
The open interest for $BTC—the 7-day simple moving average (SMA), which measures the total number of active derivative positions over the past seven days—rose to its highest level in two months, reaching $22.79 billion, CryptoQuant data shows.
The last time Bitcoin funding rates rose to such levels against a backdrop of increasing open interest, the price of $BTC subsequently fell. Specifically, in January 2025, it was at $102,198, but by April 8, 2025, it had dropped 25.37% to $76,276.
Nevertheless, $BTC may now be on the verge of a rally towards the $76,000 resistance level, which would be facilitated by stable holding above the $67,200 mark, according to an analysis by former hedge fund manager Axel Kibar.
However, if the price of $BTC falls below the $62,300 support level, the analyst predicts a correction to $53,000. Such a sell-off could be triggered by a "long squeeze," where falling prices force long holders to sell, accelerating the decline.
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