Thread by @the_coinmaster, 1/7 HOW TO USE FUNDING RATE TO PREDICT BITCOIN PRICE? Funding rate [...]

the_coinmaster

1/7 HOW TO USE FUNDING RATE TO PREDICT BITCOIN PRICE?

Funding rate is one of the best indicators to determine herd sentiment of the market. While this thread won't explain what exactly is futures funding rate but we will learn how to use funding rate to analyze where $BTC

2/7 we are in the market cycle.
BTC market cycle broadly contains 3 phases- Accumulation, Euphoria & Distribution. Note that Distribution is the longest cycle in BTC case & Euphoria is the shortest $BTC #Bitcoin

#BTC

#SP500

2/7 we are in the market cycle. BTC market cycle broadly contains 3 phases- Accumulation, Euphoria & Distribution. Note that Distribution is the longest cycle in BTC case & Euphoria is the shortest $BTC #Bitcoin #BTC #SP500

3/7 Accumulation phase starts with a huge volume capitulation. Lots of buyers chicken out and sell at shitty prices. This involves high spot volumes & highly negative funding rate. Once this happens, the funding stays negative for quite a long time $BTC #BTC

#Bitcoin

#XBT #Crypto

3/7 Accumulation phase starts with a huge volume capitulation. Lots of buyers chicken out and sell at shitty prices. This involves high spot volumes & highly negative funding rate. Once this happens, the funding stays negative for quite a long time $BTC #BTC #Bitcoin #XBT #Crypto

4/7 Accumulation to Euphoria transition is characterized by slowly reducing absolute value of negative funding rates. Funding starts turning positive & stays +ve for long time. During dips funding turns negative but for a very short time. WE ARE CURRENTLY AT THIS STAGE $BTC #BTC

5/7 I believe we are slowly transitioning into the Euphoria phase. We need to watch out 2 things: 1) Funding must stay positive for quite some time, 2) During the dips, funding must be only slightly -ve not highly -ve. $BTC #Bitcoin

#BTC

#XBT #cryptocurrency

6/7 These are actually the best times to LONG. Why? Because the dips are bought up quickly & price doesn't stay down for long time. So BTFD with proper Liquidation price management needs to be the mantra right now. Stay tuned to my updates for more info $BTC #Bitcoin

#BTC

#XBT

7/7 In my future updates, I'll share where exactly I think Euphoria stage will kick in and the market will rally like crazy. Also I will share how to analyze this market using Bitcoin on-chain metrics. Stay tuned! $BTC #Bitcoin

#BTC

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