The funding rate for perpetual contracts has fallen to its lowest level since December 2023. What does this indicate? It suggests that the enthusiasm among longs is clearly waning. Once CryptoQuant's analysis was released, it essentially confirmed that a bear market might really be coming.

Bitcoin has already broken below the 365-day moving average, a line that has traditionally been the dividing line between bull and bear markets. Breaking this line means that the long-term trend is indeed deteriorating. The good news is that the medium-term support level is expected to be around $70,000, which has been a recent focus of discussion.

More importantly, spot demand has already slowed significantly. The three waves of demand previously driven by the US spot ETF, the presidential election, and the treasury company bubble have basically been exhausted. Without demand, there is no support.

Historical data shows that this bear market is relatively mild, with a decline of about 55%, not as severe as previous crashes. But since all signals are flashing red, caution is still necessary—especially in high-leverage areas like perpetual contracts. You really need to be more careful.