The trends in the Crypto Assets market have always been the focus of investors. Recently, the movement of Bitcoin (BTC) has sparked considerable discussion. Currently, the funding rate for BTC contracts is showing a rise, which is usually seen as a precursor to market adjustments rather than a bottom signal. The true market bottom often appears when the funding rate turns positive and short positions dominate. In such cases, buy the dip operations may trigger a short squeeze, driving prices to rebound.

Currently, BTC is in a consolidation phase after a sharp decline, and the market is adapting to a new price range. From a short-term trading perspective, there may still be short positions opportunities near the price level of 116,000. It is worth noting that the market may experience a false breakout of 116,000, which requires investors to remain vigilant and be ready to take action at any time.

In contrast, Ethereum (ETH) has shown stronger resilience. Its funding rate is relatively low, even turning positive, which suggests that short positions are overly concentrated. In this case, ETH is not only difficult to continue to decline, but may instead welcome a rise. Historical data shows that a positive funding rate is often accompanied by significant rebound trends.

The rise and fall logic of the crypto assets market is actually not complicated. As a zero-sum game, when long positions are overly crowded, large funds often choose to short, causing the longs to fall into a death spiral. Conversely, when short positions are dense, institutions may go long against the trend, using the shorts as fuel for the rise, triggering a short squeeze. By observing historical funding rates and price trends, this pattern is quite evident.

However, most retail investors lack an understanding of these market mechanisms and are even unaware of the concept of funding rate. This leads to confusion when facing price fluctuations, and they operate solely based on intuition and luck, making it difficult to achieve stable returns. Therefore, continuous learning, understanding the market operation mechanisms, and gradually improving their trading strategies are crucial for success in this complex market.