🧠 Funding Rate Psychology — How Traders Get Trapped ⚠️
📊 Funding Rate doesn’t move price.
It reveals where the crowd is positioned.
⏳ When Funding is Highly Positive (+)
• Everyone is Long
• Greed is high
• FOMO dominates
• Longs feel “safe”
➡️ This is when long liquidations usually happen.
📉 When Funding is Highly Negative (-)
• Everyone is Short
• Fear controls decisions
• Panic selling increases
• Shorts feel “confident”
➡️ This is where short squeezes are born.
⏱️ Countdown = Stress Timer
As funding time approaches:
• Emotions rise
• Leverage becomes dangerous
• Volatility spikes
• Weak hands get shaken out
🧠 Smart Money Mindset
• Crowd pays funding
• Smart money waits
• Liquidity gets harvested at funding reset
🎯 Core Psychology Rule
If funding feels “comfortable” → You’re probably late.
If funding feels “painful” → Opportunity is near.
Trade against emotion.
Trade with structure.
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