Bitcoin funding rates have climbed to their highest level in about 20 months. Bitcoin has stayed around $64,000, but leveraged long positions betting on gains have increased sharply in derivatives markets, blockchain media outlet U.Today reported on Aug. 18 local time.

Funding rates are periodic fees exchanged between long and short position holders in perpetual futures markets. When the rate is positive, longs generally pay shorts. The recent rise means traders are paying more to maintain leveraged long positions.

Bitcoin moved sideways for weeks after selling pressure in June and is now trading at about $64,100. It bounced from below $60,000 but failed to clear a key resistance level near $66,300. Holding around $63,700 to $63,900, where short-term moving averages sit, is cited as a backdrop to the expansion in long positions.

Repeated support in the $60,000 to $62,000 range also had an impact. Defending that zone has somewhat reduced concerns about a further sharp drop. The relative strength index (RSI) has also risen above 50 to around 52, suggesting a slight improvement in momentum without overheating.

Still, a high positive funding rate also signals a heavier tilt toward long positioning. If bitcoin rises above $66,000, such positioning could further strengthen upward momentum. If current support breaks, increased liquidation of high-leverage long positions could amplify downside volatility.

Bitcoin remains below its long-term average of about $71,500 and its medium-term moving average of $66,300. That means optimism in derivatives markets has not been confirmed in price action. The sharp jump in funding rates shows the market is placing more weight on the recent rebound continuing.

The move shows derivatives-market positioning is turning bullish faster than the spot price. But with the price still failing to break key resistance, the surge in funding rates does not immediately signal a trend reversal, the report said.