Can the market rebound after a sharp drop be a bottom-fishing opportunity? Don't rush to chase the highs.

After several days of decline, the market has finally taken a breather. The funding rate has gradually climbed back to near neutral levels from previously negative values. Simply put, it's like both bulls and bears in the market temporarily don’t want to 'tax' each other, indicating that the panic selling has subsided and some people are getting itchy to bottom-fish.

But my feeling is that this is at most a technical rebound after a sharp drop, like a ball bouncing off the ground; it’s still far from truly rising. Some analysts believe this rebound 'feels like a dead cat bounce,' and the market is clearly not ready to shift to a 'crazy optimistic mode.' The broader environment also hasn’t seen any substantial influx of capital or macro positive news that could truly reverse the situation.

So, don’t get too excited just because you see a bit of red. My strategy is to use a small position to test the waters on those major assets that aren’t dropping further (like BTC, ETH), and it’s essential to set stop-loss orders. In case the funding rate turns downward again, it indicates that pessimistic sentiment has returned, and you need to run quickly.

In short, the market is like a spring that has been compressed for too long; just releasing it may not lead to a high bounce but might just cause a slight shake. A truly bouncing market requires more tangible fuel.