This Bitcoin pattern has appeared multiple times previously 👀.

When funding rates begin to cool down and then decline, it indicates a clear market condition.

Too many traders were positioned for long trades, leading to liquidations in the market.

Observe past cycles on the chart 👆.

Each instance of a funding rate spike was eventually followed by a price dump. This mechanism is how the market resets leverage.

Currently, several factors are at play:

A significant amount of liquidity is accumulating above the current price level.

Japan is signaling a move toward an interest-rate hike.