The fourth major reversal, referencing last year's first break of 7.3, second break of 7.2, and third break of 7.0

【One Strike and Two Weak, Three Exhausted Series】
The indicator at the top of the image shows the BTC price; the indicator at the bottom shows the annualized funding rate for BTC perpetual contracts.
The funding rate for BTC perpetual contracts is usually settled every 8 hours, totaling 3 settlements a day. To obtain the annualized funding rate, multiply the single funding rate by 3 (daily rate), then multiply by 365 (number of days in a year).
When the annualized rate is high, it indicates strong bullish sentiment in the market (too much bullish leverage, pushing the price away from the spot), and the funding mechanism “punishes” bulls to narrow the gap between the contract price and the spot BTC price. Conversely, a negative rate reflects a bearish dominance.