đđ When everyone's bullish, it's time to be cautious. That's the core lesson behind funding rates and the long/short ratio. A consistently high funding rate, say above +0.01% for 24+ hours, tells you longs are paying shorts â a clear sign of extreme greed and overcrowding. I've seen too many blow-ups because folks ignore this.
Pair that with the long/short ratio. If it's pushing consistently above 60% longs, it means the vast majority are betting on up. Historically, when 60-65% or more are long, especially on popular altcoins, it often precedes a violent shakeout or a sharp pullback to liquidate those overly optimistic positions. Think of it as too much weight on one side of the boat.
My rule of thumb: If funding rate stays above +0.01% for a full day AND the long/short ratio is above...
Pair that with the long/short ratio. If it's pushing consistently above 60% longs, it means the vast majority are betting on up. Historically, when 60-65% or more are long, especially on popular altcoins, it often precedes a violent shakeout or a sharp pullback to liquidate those overly optimistic positions. Think of it as too much weight on one side of the boat.
My rule of thumb: If funding rate stays above +0.01% for a full day AND the long/short ratio is above...