3 fundamental reasons Bitcoin market bias remains bullish after recent drop

Despite the pullback, key fundamental data points show that market bias remains optimistic.

Three fundamental factors pointing toward positive market sentiment are record high hash rate, neutral futures funding rate, and address activity.

According to data from market research firm Santiment, the number of daily active addresses on the Bitcoin blockchain is rising.

"BTC's daily active addresses continue their long-term uptrend in spite of this morning's minor retracement down to ~$9,180. After a 2-year high of 1.08M DAA on July 1, yesterday's DAA at market close nearly matched it at 1.02M DAA.".

The profitability of big mining centers reduces the probability of an intense sell-off in the Bitcoin exchange market.

Miners are regarded as an external source of selling pressure against the cryptocurrency exchange market.

Bitcoin futures exchanges employ a mechanism called "Funding" to provide balance in the market.

The funding mechanism incentivizes either short or long contract holders if the market sways to the opposite side.

Currently, the funding rate on BitMEX and Binance Futures remains at a neutral 0.01%. It shows the market is net neutral following the recovery of BTC from $9,110 to nearly $9,300.

A confluence of a neutral futures market and optimistic fundamental metrics suggest an overall positive sentiment in the Bitcoin market.