SOUL MATE here

📰 Daily Market Update:

The funding rate is one of the most important “sentiment indicators” in crypto derivatives.

📊 [ETH] Funding Rate by Exchange

Funding rates are periodic fees exchanged between traders in perpetual futures markets to keep contract prices close to the spot market.

📈 Positive funding (+)

Occurs when futures prices trade above spot prices.

Long positions pay shorts.

This reflects market optimism and long dominance.

📉 Negative funding (–)

Occurs when futures prices trade below spot prices.

Shorts pay longs.

This reflects fear or bearish positioning.

⚠️ When funding reaches extreme levels, either positive or negative, it becomes fuel for liquidations.

If everyone is positioned in one direction, even a small move against the crowd can trigger forced closures and sharp price reactions.

🔬 Key Observation

📈 BitMEX funding rate surged to an extreme positive level of 0.049%, a level not seen since October.

📈 This value exceeded the late-October peak near 0.03%, marking a clear escalation in leverage on the long side.

🔎 Looking specifically at Binance, the largest derivatives venue by volume:

📈ETH funding moved from deep negative cooling levels of –0.025% on February 5

📈 Back toward neutral territory at the time of writing.

📌 This transition suggests a clear shift in derivatives positioning, where long positions are now dominating new open interest, replacing short exposure that previously controlled the market.

🧠 Final Conclusion

⏲️ Historically, strongly positive funding driven by leverage expansion has not favored sustained upside, but instead increased the probability of sharp corrective moves.

Written by Amr Taha

Bitcoin Elliott Wave Update – Recovery Rally From Here? Part 2

$BTC #Bitcoin #BTC