Date: Sunday, February 1, 2026

Indicator: Funding Rates / Open Interest

Narrative: The Healthy Reset

Sentiment: Bullish Continuation 🟢

Stop looking at the red candles for a second. Look at the Funding Rates.

For the last 4 days, the crypto market was "overheated." Traders were longing Bitcoin with excessive leverage, pushing funding rates on Binance Futures to dangerous highs (0.05% per 8 hours). This meant it was expensive to be a bull.

The crash this morning fixed everything.

As of 2:00 PM today, the "Leverage Flush" is complete. The weak hands have been liquidated, and the market mechanics have officially RESET to baseline levels.

Here is why this specific technical signal often precedes a massive "Super Monday" pump.

1. 📉 The "Funding Flip" (Why Cheaper is Better)

* The Problem: When funding is high, Longs pay Shorts. This creates drag on the price.

* The Fix: The drop to $86.5k wiped out the over-leveraged longs.

* The Signal: Funding rates on BTC and ETH have just dropped back to the default 0.01%.

* What it Means: It is now "cheap" to buy again. Whales love entering when they don't have to pay a premium. The friction is gone.

2. 📉 RSI Cooldown (The Oversold Bounce)

Markets breathe. They inhale (pump) and exhale (dump).

* The Data: On Friday, the 4-Hour RSI (Relative Strength Index) was at 82 (Overbought). A dump was inevitable.

* The Now: Right now, the 4-Hour RSI is sitting at 34 (Oversold).

* The Probability: Statistically, when Bitcoin hits an RSI of 30-35 during a Bull Market, the bounce is violent. We are in the "Buy Zone."

3. 🌏 The "Asia Open" Catalyst

Timing is everything.

* The Context: Asian markets (Hong Kong, Tokyo, Seoul) open in less than 12 hours.

* The Pattern: Asian traders notoriously love buying "Monday Dips." They often wake up, see the discount left by Western weekend panic, and bid the price back up.

* The Prediction: Expect a sharp reversal starting around 00:00 UTC Monday.

🛡️ The "Monday" Playbook

The market is cleaner and healthier than it was 24 hours ago.

* Watch the OI (Open Interest): If price starts moving UP, but Open Interest stays LOW, that is "Spot Driven" buying. That is the most bullish signal possible.

* Target the "High Beta" Coins: When the reversal happens, coins that dumped the hardest often bounce the highest. Keep an eye on Near Protocol ($NEAR) and Sui ($SUI).

* Don't Short the Lows: Shorting a market after it has already dropped 5% is a recipe for getting wrecked. The risk/reward favors the Longs here.

🧠 The Verdict

The "Crash" was actually a "Cleaning."

The leverage is gone. The indicators are cool. The discount is here. The market has cleared the runway for the next attempt at $90,000.

The reset is complete. Are you ready for the bounce?

👇 Do you track Funding Rates? Or do you just trade the vibes? Let us know your strategy!

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