K33 Research: The funding rate indicator suggests that the market will bottom out and rebound in the coming weeks

ChainCatcher news, K33 Research stated in a market report released on Tuesday that a reliable indicator suggests a significant rebound in the coming weeks and months. According to the report, the 30-day average funding rate for perpetual contracts has dropped to negative levels, a phenomenon that has only occurred six times since 2018.

K33 analysts Vetle Lunde and David Zimmerman wrote, "Historically, when the monthly funding rate falls to negative, it usually indicates a market bottom."

The report noted that after this indicator turned negative, the average return over the next 90 days was 79%, while the median return over 90 days was 55%.