- Bitcoin faces a key correction phase, with buy zones between $40K-$55K; deeper dips may present stronger accumulation chances.
- Negative funding rates suggest traders expect further downside, but history hints at potential rebounds after similar sentiment shifts.
- Leverage drives Bitcoin’s price swings—neutral funding rates signal market stabilization, but another correction remains possible.
Doctor Profit, a well-known analyst, has identified a critical accumulation range for Bitcoin. His chart highlights a “Black Swan entry” between $40,000 and $55,000. He suggests allocating 95% of available cash if Bitcoin falls between $35,000 and $40,000. The price recently hit $79,021.43, showing a correction from its peak. Bitcoin previously rebounded from sharp declines, reinforcing bullish long-term trends.
Source: Doctor Profit
Market Correction and Strategic Planning
Bitcoin has demonstrated strong bullish momentum since early 2023. It surged past $90,000 in January 2025 before experiencing a correction. The downturn is linked to increased selling pressure and market-wide risk adjustments.
Funding rates are a key indicator of trader sentiment. Currently, they are negative for the first time since Bitcoin was at $28,000 in October 2023. This suggests traders are betting on further downside. Historically, negative funding rates have preceded price recoveries, indicating a potential market reversal.
Correlation Between Price and Leverage Activity
Bitcoin Magazine Pro’s data confirms funding rate trends. By March 2024, the price of Bitcoin had risen from $35,000 in November 2023 to over $50,000. Further benefits resulted from higher pricing driven by increased leverage. When Bitcoin hit $100,000 in early 2025, it sparked intense leverage activity. But a steep correction ensued, bringing the price down to about $80,000.
Source: Bitcoin Magazine Pro
Leverage remains a driving force behind Bitcoin’s movements. High funding rates correlate with price rallies, while corrections follow extreme speculative phases. Currently, funding rates are neutralizing, indicating market stabilization.
