Shocking! While retail investors are frantically going long, whales are quietly flipping to short! These hidden signals have already explained everything!

Market sentiment is quietly shifting, funding rates reveal bearish signals.

Funding rates are the thermometer of market sentiment, and the subtle changes at this moment are laying the groundwork for the future market.

On August 25, Coinglass data showed that the funding rates on mainstream CEX and DEX platforms have generally fallen below 0.005%, indicating that market sentiment has shifted from enthusiasm to caution, and even slightly towards bearishness.

This phenomenon means that in the perpetual contract market, long positions need to pay fees to short positions, reflecting that short-term speculators are more inclined to bet on price declines.

From a personal analytical perspective, the turn in funding rates is often a precursor to market phase peaks or bottom rebounds.

For example, in May of this year, when Bitcoin fell below $67,000, the funding rate once dropped to -0.02%, and the market then experienced a significant rebound.

Although the current rate is not in extreme negative territory, consistently staying below 0.005% suggests that the strength of the bulls is waning, especially in the altcoin contract market where localized sell-offs may occur.

It is worth noting that funding rates are merely sentiment indicators and not direct price prediction tools—if combined with open interest and volatility observations, if a surge in short positions occurs without a significant price drop, it may brew a 'short squeeze'.

A case in point is September 2023, when the ETH funding rate remained below 0.003% for a week, but the price did not plummet; instead, it entered an upward channel the following month.

This reminds us: "When the market is bearish, it is often the time for smart money to position contrarily."

Current data may suggest short-term adjustment pressure, but the medium to long-term trend still requires attention to macro liquidity and the fundamental aspects of cryptocurrencies.

Have you ever thought: when the majority starts to turn bearish, is there an opportunity brewing in the shadows? #比特币远古巨鲸持续出清

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