Here's what happened when price rose 62 percent and the accounts underneath it got less long, not more.
The pain most traders know is buying the green candle because it feels like confirmation, then finding out the move was shorts getting squeezed, not new money showing up. Miss the exit and the funding you collected on the way up does not cover the giveback.
Funding tells you which side was being added. It had just printed +0.0029 percent. The last five settlements after that read -0.0121, -0.1902, -0.6321, -0.7775 and -0.3937 percent. Shorts paid longs roughly 0.78 percent in one eight-hour window. The long-short account ratio moved with it, from 1.41 to 1.24 to 1.12 to 1.01.
So the book was flattening while price was still climbing. Deeply negative funding can look like a gift if you are long and a trap if you are short. It is also a warning that the rally may be cover rather than conviction. You almost never see an eight-hour print that heavy on $BTC . People still size the fast contract like $ETH or $SOL and then wonder why the late long is the one left holding a 62 percent move that fewer accounts actually wanted.
What's your read when funding and the account ratio diverge like that?
#FundingRates #CryptoTrading #Perpetuals
The pain most traders know is buying the green candle because it feels like confirmation, then finding out the move was shorts getting squeezed, not new money showing up. Miss the exit and the funding you collected on the way up does not cover the giveback.
Funding tells you which side was being added. It had just printed +0.0029 percent. The last five settlements after that read -0.0121, -0.1902, -0.6321, -0.7775 and -0.3937 percent. Shorts paid longs roughly 0.78 percent in one eight-hour window. The long-short account ratio moved with it, from 1.41 to 1.24 to 1.12 to 1.01.
So the book was flattening while price was still climbing. Deeply negative funding can look like a gift if you are long and a trap if you are short. It is also a warning that the rally may be cover rather than conviction. You almost never see an eight-hour print that heavy on $BTC . People still size the fast contract like $ETH or $SOL and then wonder why the late long is the one left holding a 62 percent move that fewer accounts actually wanted.
What's your read when funding and the account ratio diverge like that?
#FundingRates #CryptoTrading #Perpetuals