While investors are betting on a rise in Bitcoin (BTC) and moving to sell Ethereum (ETH), sudden changes in funding rates indicate the key to the correct buying and selling points.
According to data from the cryptocurrency analysis platform Santiment, Bitcoin investors generally take long positions to achieve slight gains after the recent decline, while Ethereum investors quickly changed direction based on short-term price movements.
Santiment revealed that after the dip experienced yesterday, Bitcoin investors began to open long positions and were partially rewarded with this strategy. On the other hand, Ethereum investors reacted more quickly to price movements, shifting their positions from long-term to short-term. This situation clearly reflects the psychology of investors during volatile periods in the market.
Santiment warns that the fluctuating funding rates on exchanges between extreme points increase the liquidation risk for investors. These rates usually provide strong signals about investors' position preferences, while overly optimistic or pessimistic situations can also determine clear entry and exit points in the market.
Santiment analysts note that sudden changes in funding rates create important trading opportunities for investors. Accordingly, the best entry points typically arise during periods when investors generally take positions against a cryptocurrency, while the most suitable exit points occur during times when the market has excessively high expectations of rising.
It is stated that closely monitoring Bitcoin and Ethereum funding rates will provide significant advantages for investors who want to better understand market dynamics.
