Hello everyone, today is November 1, 2023. Today we will talk about the trend of Bitcoin and the issue of funding rates. Recently, a fan bought at the price of 25K-26K. Now the profits from futures are considerable, but the funding rate is being deducted every day, which makes him a little worried.

Let’s take a look at the daily chart (Figure 1) first. Guess which position is the important buying point? That's right, it's the 25K position. At this price, the main force has been manipulating the market and the bookmakers have been acting, so it is difficult for 25K to fall. Don't panic when a death cross occurs in the market, it is likely to be an important buying point.

Then, let’s talk about funding rates. The funding rate is set by the exchange to balance the positions of both long and short parties, and it will change with the difference between the futures price and the spot price. If the funding rate bothers you, you can consider adjusting your position, or closing the position appropriately when the market consolidates, and wait for the right time to buy again.

Next, let’s look at the weekly chart (Figure 2). The current RSI value is relatively high, which indicates that the market may be in a super strong zone. In this case, we must seize the opportunity and not miss larger profits because of small profits.

Finally, we must always pay attention to market fluctuations. Although the funding rate is deducted every day, if we seize the general trend of the market, the profit will exceed the funding rate. Therefore, at this stage, don’t worry too much about funding rates, but focus on the overall market trend.

To sum up, everyone’s position, funds and mentality are different, and we need to adjust our strategies according to our own circumstances. Regarding the issue of funding rates, we can adjust positions in a timely manner, or close positions appropriately when the market consolidates, and wait for the right time to buy again. While paying attention to the funding rate, we must also pay attention to the overall market trend, seize the general trend, and obtain greater profits.

Okay, let’s share it here today

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