Bitcoin funding rates have turned negative again while the price trades near the $81,000 resistance zone. At the same time, the crypto market cap excluding the top 10 assets is pushing against a major ceiling of $200 billion.

Traders now watch for the same setup that appeared during earlier rotation phases in crypto. Bitcoin stays firm, short positions build up, and altcoins start to stabilize after months of heavy downside.

Negative Funding Rates Return

Data shared by CryptoJack shows funding rates across major exchanges turning negative again for Bitcoin. Funding rates stay negative when short sellers dominate perpetual futures positioning. Traders pay to hold bearish positions while the price remains firm or climbs higher.

Analyst House of Crypto said this creates conditions for forced buying if Bitcoin keeps moving higher. When short positions get liquidated, exchanges automatically buy Bitcoin back into the market. This can push the price higher in a fast move.

Bitcoin moved above $81,000 before pulling back slightly. Despite the rally, sentiment across altcoins remains weak. Market data still shows Bitcoin dominance above 61%, meaning most capital remains concentrated in BTC instead of rotating into smaller assets.

Altcoins Push Into Resistance

According to Ash Crypto, the “Others” market cap chart now sits near the top of a multi-month rising channel. The structure started forming after the sharp February sell-off that pushed the market cap to around $160 billion.

Since then, altcoins have printed higher lows while slowly climbing toward resistance. The current range between $196 billion and $200 billion now acts as the key breakout area and has support at $175 billion.

Ash Crypto said a clean move above $200 billion could trigger a broader altcoin rally. Several analysts also noted that some altcoin pairs against Bitcoin have started showing early signs of stabilization after a long downtrend.

Analyst Market Mobster said many altcoins now look like they are forming a bottoming structure on higher timeframes, even though the broader market still lacks strong participation.

The analyst added that stablecoin dominance has started falling slowly while Bitcoin continues climbing. That combination usually becomes more important once capital rotation begins.

Still, the broader altcoin market remains weak against Bitcoin. Ethereum continues to underperform on the ETH/BTC chart, which remains one of the main indicators traders watch for a true altcoin season.

Related: Why Altcoins Like DASH, SIREN, SKYAI Are Surging Today