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 turned negative, a rare occurrence that has only happened six times since 2018.

K33 analysts Vetle Lunde and David Zimmerman wrote, "Historically, when the monthly funding rate drops into negative territory, it often signals that the market has bottomed out."

The report further noted that when this indicator previously turned negative, the average return over the next 90 days was 79%, with a median return of 55%.