The key signal of the end of the bull market: abnormal fluctuations in funding rates. As the bull market enters the second half, the altcoin craze is about to kick off, and in theory, every investor's account balance is expected to achieve significant growth. However, if you cannot accurately grasp the end of the bull market, the profits earned will only be rich on paper, and you may even suffer losses in the bear market.

During the peak period of the bull market, if the funding rate is abnormal, it often indicates that the bull market is about to end. Taking the rise from February 28 to March 13, 2021 as an example, although the price broke through the previous high, the funding rate almost did not rise, reaching only half of the previous high at its highest. At the same time, the long-short position ratio of large investors shows a downward trend, which shows that the market’s bullish sentiment is no longer as strong as before, and the upward momentum is obviously insufficient. Subsequently, when the price exceeded 65,000, it quickly fell back, further verifying the relative weakness of buying power.

Another example is the October 2021 rally. From October 1st to October 22nd, the market showed an obvious upward trend, but the funding rate remained almost unchanged. This reflects that the market’s bullish sentiment is not strong and the buying power is insufficient to support the bull market’s continued rise.

A healthy bull market rise is usually accompanied by a simultaneous increase in funding rates and the long-short ratio of open interest, which indicates that the market is bullish and has sufficient buying power, which can effectively support a large number of selling orders in the bull market. Therefore, the funding rate is a crucial signal. Bull markets often reach their peak in a frenzy, with altcoins skyrocketing and market sentiment high, attracting a large number of novices. After capturing these signals, investors should pay close attention to whether the funding rate and the upward trend are abnormal, so as to decide whether to implement a position reduction strategy.

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