4.21 BitTiger Diary

Does a negative funding rate always mean a market reversal? Lately, I’ve seen a lot of bros worried about $BTC’s negative funding rate. Does this mean the shorts are about to get wrecked again? The chart gives a clear answer: not necessarily! Negative funding rate = bearish sentiment dominates the market, possibly leading to over-shorting. This does create short-term squeeze/rebound potential. But looking at the previous instances of negative funding rates marked in the green boxes, not every time resulted in an immediate V-shaped reversal. Sometimes, the price consolidates first or even dips further. Currently, $BTC is still consolidating at a high level. In the mid-to-late stages of a bear market, negative funding rates often signal profit-taking and shakeouts rather than a solid bottom. A true bear market bottom only forms under extreme conditions: extreme fear, extreme losses, and extreme one-sided shorting. The more extreme the situation, the higher the probability of a bear market bottom. A skilled sniper only pulls the trigger when they’re most confident. Stay patient, wait for the funding rate to return to positive territory, and keep an eye out for signals in May. ✊✊ 75600