Most traders ignore funding rate.
That’s why they get trapped at the worst time.
FUNDING RATE shows you exactly who’s trapped on the wrong side.
If you ignore it, you’re trading blind.
Here’s how it actually works...
$BTC - This doesn't look like a one-way liquidation setup anymore. The easy downside fuel was already harvested.
Now both sides have inventory. That's usually where the fake moves start appearing.
@TedPillows Not sure that's the whole story.
OI is lower than the recent highs and Coinbase premium is still soft on my feed. Perps may be participating, but spot doesn't look convinced yet.
@Jeremybtc The assumption here is that exchange transfers automatically equal selling pressure.
How much of that flow can actually be tied to net distribution versus custody, rebalancing or ETF operations?
The conclusion depends heavily on that distinction.
$BTC - OI expansion got price higher around previous day high
Now we find out whether that was new demand or just urgency. Conviction still needs to prove itself.
$BTC is already trading below the 2Y MA.
Historically that's been associated with pessimism and long-term opportunity, not euphoria.
What's unusual is that flows still look weak.
ETF outflows remain heavy. Major VWAP reclaims haven't happened.
Valuation says one thing and participation says another.
That's probably the most important tension in the market right now.
$BTC swept below previous week's VWAP and monthly VWAP support area around 60.7K, failed to find continuation, and is now trading back inside the prior distribution.
Not a bullish signal by itself but an example of sellers getting less downside than they were getting last week.
The next test is Monday's low.
If price can't reclaim that area, this remains a bearish rotation. If it does, then the market starts forcing shorts to defend higher.
$BTC swept below previous week's VWAP and monthly VWAP support area around 60.7K, failed to find continuation, and is now trading back inside the prior distribution.
Not a bullish signal by itself but an example of sellers getting less downside than they were getting last week.
The next test is Monday's low.
If price can't reclaim that area, this remains a bearish rotation. If it does, then the market starts forcing shorts to defend higher.