Let me explain in the simplest way 👇
Whenever the funding rate starts to cool down and turns to decrease, it indicates a very clear signal:
👉 Too many traders are LONG
👉 The market starts to liquidate those positions
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📊 Looking at the cycles on the chart 👆
Every time the funding rate spikes: 📈 Leverage is pushed up too high
📉 Then, the final price decreased
➡️ This is how the market works: Reset leverage – clean up liquidity ❌ Not manipulation
✅ It is the natural operating mechanism of the market
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⚠️ So what's happening right now?
• Liquidity is being built densely around the current price range
• Japan is approaching a rate hike
• That means global liquidity may be withdrawn
👉 And whenever liquidity pulls away, prices often drop
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📅 What's concerning on December 19?
If Japan actually raises interest rates on 19/12: 📉 A sharp decline in Bitcoin is entirely possible → Just as the pattern has repeated multiple times in the past
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🧠 So what should you do right now?
🔸 If you hold risky assets → Be extremely cautious
🔸 If you are currently making a profit → Taking some off the table to protect your gains is reasonable
🔸 If you are at a loss → Don't panic sell
👉 This decline won't last forever
⏪ History shows: ➡️ After declines due to liquidity, the market often recovers
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🎄 Overall perspective
📉 Bitcoin has the potential to maintain a weak / declining trend around Christmas
📈 From the beginning of the new year, especially until mid-January, we may start to see:
Stability is returning
A remarkable recovery bounce
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🧭 Reminder for all traders:
⚠️ Trade carefully
🧘 Control your emotions
⏳ Let the market do its job
ETHUSDT (Perpetual): 2,930.37 (+0.09%)
