Price dropping while Open Interest climbs and funding flips negative — classic squeeze setup.
When longs get flushed and shorts pile in at the bottom, that's fuel. OI rising into a decline usually means over-leveraged positions stacking up. Negative funding? Shorts are paying to hold. That imbalance doesn't last.
I've seen this movie before. The spring gets wound tight, then it snaps. Watch for a sharp reversal once weak hands capitulate and shorts get too comfortable. Don't chase the move down — let structure confirm the turn, then ride the bounce with a tight stop.
Stay disciplined. The setup is there, but timing matters.
When longs get flushed and shorts pile in at the bottom, that's fuel. OI rising into a decline usually means over-leveraged positions stacking up. Negative funding? Shorts are paying to hold. That imbalance doesn't last.
I've seen this movie before. The spring gets wound tight, then it snaps. Watch for a sharp reversal once weak hands capitulate and shorts get too comfortable. Don't chase the move down — let structure confirm the turn, then ride the bounce with a tight stop.
Stay disciplined. The setup is there, but timing matters.