Hello brothers, lately I've seen the funding rate is too negative.
It turns out that whenever you see a coin rising, you short it heavily. Therefore, I have a few small notes when looking at the funding rate for analysis. 1. OI decreased but the funding rate is not deeply negative → Not a strong short signal, just a temporary panic sell. 2. OI increases significantly but the price remains flat → This could be accumulation or a leverage trap before a major move. 3. The funding rate is deeply negative but the price is not dropping further → A sign that a short squeeze is about to happen. 4. High positive funding rate but the price does not increase → Long positions are overloaded, making it easy for a dump. 5. The price of OI increases, but the borrowing interest rate for stablecoins also rises → Investors are borrowing stablecoins to go long, increasing the risk of reversal. #BTC & ETH Weekend Analysis #Choppy Market – Long or Short? #Trump Pauses Tariff Policies
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Hello brothers, lately I've seen the funding rate is too negative.
It turns out that whenever you see a coin rising, you short it heavily. Therefore, I have a few small notes when looking at the funding rate for analysis.
1. OI decreased but the funding rate is not deeply negative → Not a strong short signal, just a temporary panic sell.
2. OI increases significantly but the price remains flat → This could be accumulation or a leverage trap before a major move.
3. The funding rate is deeply negative but the price is not dropping further → A sign that a short squeeze is about to happen.
4. High positive funding rate but the price does not increase → Long positions are overloaded, making it easy for a dump.
5. The price of OI increases, but the borrowing interest rate for stablecoins also rises → Investors are borrowing stablecoins to go long, increasing the risk of reversal.
#BTC & ETH Weekend Analysis #Choppy Market – Long or Short? #Trump Pauses Tariff Policies