It is once again confirmed that the funding rate is one of the best funding observation tools.
Starting at noon on March 13, BTC has been fluctuating in a wide range of 70,000 USDT-73,000 USDT for more than 32 hours. During this period, the funding rate has been higher than 30% (the highest is even above 80%), which means that the bulls have been losing blood. Just as a friend said in the comment area of the original post: "It can't keep rising. I pay dozens of U in capital fees a day. I can't sustain it if the currency price doesn't rise." With a profit of 1,000u, the rate was charged me 480u.”
What's the meaning? If the rising momentum continues to fail, no one can stand such a high fee rate. Therefore, on March 14, although BTC broke through the upper edge of the shock range (73,000 USDT), it briefly surged to 73700 USDT, but then fell back again, which was a clear exit signal:
The bulls are gradually showing signs of fatigue in this tug-of-war and have been unable to break through. However, they have to continue to pay the shorts an annualized long cost of more than 30%. In this kind of stalemate war of attrition, time is the friend of short sellers. Once some bulls start to take the lead in closing their positions and running away, it will trigger a domino stampede, with a drop of at least 5%-10%.
Therefore, in terms of investment performance-price ratio, the performance-price ratio of perp is not as good as that of put here, especially the doomsday virtual value put. A few lots per day, using limited losses to earn excess returns - once there is a 5%-10% drop, the returns will be double rise.
The funding rate is bearish + the doomsday put is self-defense, and it has been tried and true.
友情提示下风险：BTC 和 ETH 的资金费率，已连续 32 小时处于 30% 以上水平（最高甚至在 80% 以上），多头是一直在失血。
